With vaccination rates approaching 80 per cent across the country for first doses, sentiment is being underpinned by expectations of a solid economic rebound on top of a large pipeline of residential construction and strong house prices.
“While economic growth expectations declined in the latest ANZ-PCA Survey, they remain significantly above pre-pandemic levels.”
The impact of the pandemic has been uneven. In the residential sector, the outlooks for both construction and prices are benefitting from targeted stimulus like the HomeBuilder program and record low mortgage rates. Conversely, the impact of COVID-19 is weighing on the office sector with the latest round of lockdowns stalling the recovery in sentiment in office property, hitting occupancy and highlighting concerns about the extent and permanence of work-from-home arrangements.