Survey points to steady confidence, with Victoria the outlier
Confidence in Australia’s property sector remains in positive territory heading into 2026, although expectations for the broader economy are softening, according to the latest Procore/Property Council industry survey.
The national confidence index eased to 123 in the December quarter, down from 125 at the beginning of the year. With 100 regarded as neutral, the reading indicates that overall sentiment across the sector remains upbeat.
Despite weaker expectations for economic conditions and limited anticipation of interest rate changes over the next 12 months, respondents forecast increased construction activity across all major asset classes. They also expect modest price growth over the coming year.
However, industry participants expressed dissatisfaction with government performance. On average, sentiment towards state governments was negative, while perceptions of the federal government’s performance have become more pessimistic.
Housing supply and affordability again emerged as the dominant concern at the national level. Thirty-five percent of respondents nominated it as the most important issue for the federal government to address, with tax reform in second place at 20%.
At state level, the pattern was similar. Housing remained the top priority for 32% of respondents, followed closely by property taxes and charges at 31%. For mortgage professionals, this focus underscores ongoing pressure on borrowers and developers navigating planning, tax and affordability constraints.
Mike Zorbas (pictured right), chief executive of Property Council of Australia, said the sector wanted to see faster delivery of projects once approvals had been granted.
“Governments across the country have outlined their ambitious visions for boosting supply, but there are still huge holdups on post approval green lights and delivery from water and electricity and heritage providers,” he pointed out.
“Victoria remains the wooden spooner. It is the only state where confidence among the property industry is outright negative. Thanks to excessive changing taxes on property projects, Victoria is pulling in the opposite direction of other states keen to welcome institutional investment that will help Australian companies build the industrial, commercial and housing assets our cities need.”
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