Property industry confidence has plunged.
Property industry confidence has plunged 19 points to near-neutral levels as Middle East war uncertainty and soaring costs threaten Australia’s housing pipeline.
The Procore / Property Council Industry Sentiment Survey for March 2026 revealed a sharp softening in expectations across the development and construction pipeline.
The survey was conducted from March 9 to 27 amid rising construction and labour costs that combine with supply‑chain pressures to slow the feasibility of converting approvals into homes on the ground.
Aerial view the Gold Coast.
The survey shows national industry confidence has fallen by 19 index points.
The survey showed national industry confidence has fallen by 19 index points, from 123 to 104, the largest quarter‑on‑quarter decline since June 2022, edging closer to the neutral benchmark of 100.
Mike Zorbas, chief executive of the Property Council, said the industry’s confidence was key to new supply.
“It would be a mistake to underplay such a sharp drop,” Mr Zorbas said.
“Whether industrial, commercial or living sector, projects need both investor and consumer confidence to get them out of the ground.”
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Property Council chief executive Mike Zorbas. Picture: NCA NewsWire / Martin Ollman
The March 2026 survey showed a broad‑based softening in expectations — economic management is at its highest level of concern (27%) since 2020.
All sectors recorded a decrease in sentiment towards construction activity over the quarter.
Housing capital growth expectations have fallen to their lowest level since 2020, signalling a clear deterioration in investment appetite.
“With costs high and confidence fragile, even relatively small increases in uncertainty can delay or stall projects before construction begins,” Mr Zorbas said.
“Our cities are where housing, jobs and productivity meet and must be in balance.
“Housing is a long-term investment, and investors, who finance 4 in 10 new homes prize stability.
Housing capital growth expectations have fallen to their lowest level since 2020.
“When potential changes to settings like capital gains tax increase uncertainty or reduce returns to investors, fewer projects stack up, and that ultimately means fewer new homes get built.
“Capital will go where it is welcome.
“Jacking up taxes on new housing investment would make shares more attractive.
“The total tax take on a new home is more than 3 dollars in every 10.
“At a time when we need more homes, the solution is dropping taxes on long‑term investment in new housing.”
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