The quarterly survey of 935 industry professionals revealed optimism around interest rates, staffing levels and housing prices, even as concerns over government policy and forward work schedules weighed on sentiment.
All states and territories expect to increase staffing levels over the next 12 months, but Queensland was the only market to record a fall in forward work expectations, highlighting the uneven outlook for construction activity.
Respondents in New South Wales, Victoria and South Australia were upbeat about the national economy, while sentiment at the state level turned negative in Victoria and the ACT.
ACT Property Council executive director Ashlee Berry was concerned about Canberra’s trajectory.
The territory’s satisfaction markers climbed between December 2024 and March 2025, but have now seen their fastest decline following the pandemic.
“The concern we’ve got is that ACT sentiment is declining, while the other jurisdictions are coming out of that and starting to see an uptick in sentiment,” Ms Berry said.
Industrial and residential markets are tipped for the strongest growth, while office values are expected to fall in parts of the country.
For the first time in years, every market expects interest rates to fall in 2026, with debt finance availability tipped to improve.
That optimism is feeding through to higher capital growth expectations, with all states forecasting house price gains above their historical averages.
Sector sentiment remains split, with residential and industrial assets leading the way, hotels and retirement living also showing strength, and office markets in Victoria and the ACT bracing for declines.
Retail is patchy, with the ACT the only jurisdiction tipping weaker values.
Despite the positive outlook on rates and prices, industry frustration with government policy was clear.
No state recorded positive sentiment towards the Federal Government’s performance, with housing supply and affordability again topping the list of national concerns.
At the state level, property taxes and charges have now overtaken housing supply as the most critical issue for the industry.
