The confidence of Queensland’s property industry has dropped to its lowest levels in three years following the State Government’s decision to introduce a new investor tax on foreign investors.
The latest ANZ/Property Council industry survey shows that Queensland’s confidence has dropped from 129 to 121 index points over the last quarter.
Property Council Queensland Deputy Executive Director, Jen Williams, said the results are a direct reflection of the State Government’s introduction of a new transaction surcharge on foreign investors.
“It is clear that the State Government’s new tax on foreign investment is impacting industry confidence,” Ms Williams said.
“Foreign investors play a crucial role in Queensland’s property industry, funding job-creating local projects and producing new housing stock for Queensland families,
“As Queensland’s largest industry, generating a ninth of the state’s GDP, the property sector is critical to the health of the state’s economy.”
Queensland has recorded the largest drop in sentiment of any jurisdiction over the last 12 months and has descended to its lowest level of industry confidence since the September quarter of 2013.
“The local property industry requires confidence to drive investment,” Ms Williams said.
“While the Government’s new planning legislation and commitment to refresh the SEQ Regional Plan have been welcomed by industry, their new tax on foreign investment undermines these positive reforms,
“The health of the property industry will be critical to the Queensland economy’s transition from resource-dependence to more diversified growth,
“Unlocking the industry’s potential requires confidence - which is hard won and easily lost.”