Despite the fall, the Territory remains in a solid position overall, sitting behind only South Australia, and well up from just 85 points measured in 2012.

According to the latest ANZ/Property Council December 2018 quarter survey released on Thursday, the ACT recorded a slight downward shift in sentiment, down two index points in the 12 months to December 2018 to 134 points.

There was bad news for retail confidence, with the value of retail space expected to dip 12.5 index points - the biggest drop in the country.

House price growth is also expected to slow to 2.1 index points from 21.3 but escaping the huge drops expected in NSW and Victoria.

Property Council ACT executive director Adina Cirson said despite confidence dropping over the past 12 months, there was optimism towards construction and staffing levels – with the ACT topping the nation in both indicators.

She said the dips in house, retirement living, hotel and retail capital growth expectations, were being countered by increases in the office and industrial markets and a slight improvement in debt finance expectations.

The report showed retirement living growth expectation in the ACT dropping, with rising demand on retirement living.

Ms Adina said it showed an urgent need to start delivering greater housing choice for the territory's ageing population.

She said the ACT was still in a strong position despite the dips in house, retirement living, hotel and retail capital growth.

“Territory economic growth expectations have also dipped but remain in the positive, while respondents are relatively neutral when it comes to ACT Government performance," she said.

"It is concerning that the sector is lacking confidence in the Federal Government being able to do a good job delivering policies that encourage jobs and economic growth - with results taking a deep dive into the negative, falling 23 index points to -12.8.

“These quarterly results are showing that the ACT remains in a good position from the beginning to the end of the calendar year, with indicators such as forward work schedule expectations once again forging ahead after a slight dip last quarter.

"We are also seeing a significant increase in confidence for hiring more staff to meet the forward work schedule demands, indicating a positive financial outlook.

Ms Adina said the council would continue to push the government for streamlined planning approvals and the right tax framework and incentives in place to encourage development.

“Our housing typology needs to reflect and meet the future needs of our city and a fuller understanding of the density that needs to be created – and this is critical to long-term planning for our future residents,” she said.