NAB survey finds nearly half of developers plan to start new projects within six months, with QLD and WA leading the pipeline
Property developers are maintaining development pipelines despite softer market conditions and economic uncertainty, according to the latest NAB Commercial Property Survey.
Nearly half of respondents (49%) plan to commence new projects within the next six months, above the survey's long-run average of 47%.
Developer activity is most pronounced in Queensland (75%) and Western Australia (67%), compared with New South Wales (46%), Victoria (28%), and South Australia/Northern Territory (25%).
Developers are also drawing increasingly on existing land holdings, with nine in 10 planning to use land bank assets for future projects, up from 74% the previous quarter.
Commercial property confidence eased in the June quarter, though sentiment remains positive over both a 12-month horizon (+20) and a two-year outlook (+39).
"Australian businesses have repeatedly demonstrated their ability to adapt and invest through changing conditions, and today's property developers are showing that same resilience," said Jasmine Ashton (pictured right), executive, specialised banking at NAB.
"Despite ongoing uncertainty, many developers are continuing to advance projects and maintain development pipelines. Nearly half are planning to commence new projects in the next six months, a positive signal for future housing and commercial property supply.
"Rather than waiting on the sidelines, developers are making strategic decisions now, including drawing on existing land banks to keep projects moving and prepare for future demand. While confidence has eased from earlier highs, the sector remains optimistic about the medium-term outlook and is positioning itself for future opportunities."
Brisbane-based developer Gavin Jones also pointed to demand fundamentals as a driver of continued investment.
"The underlying demand for housing remains very strong, particularly in growth corridors throughout Southeast Queensland, and more affordable parts of the market," said Gavin Jones, developer at JSF Property Management.
"We're continuing to invest in new projects because we believe the long-term outlook is positive, and there's a clear need for more housing to support growing communities.
"While market conditions can fluctuate, the fundamentals remain strong and we're focused on helping meet demand by bringing more housing supply to market."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
