Confidence in Canberra's property industry has taken a dip according to a new survey, with the industry attributing the decline to the ACT government's building industry regulations.
The quarterly ANZ/Property Council survey found that the overall confidence index, which measures property industry sentiment, fell by 17 points to 127.
The survey was conducted from November 18 to December 6, 2019 during the period when the ACT government committed to a new licensing scheme for developers.
Minister for Building Quality Improvement Gordon Ramsay said at the time the scheme would ensure accountability in the building sector.
This would be the first legislation of its kind in the nation and was met with push back from industry.
Property Council ACT Adina Cirson said the survey result showed the importance of good policy in underpinning industry confidence.
"Our economic fundamentals are generally good which is reflected in the positive scores on some of the key measures which determine the health of the industry, including expectations around forward work and staffing levels," she said.
"These measures also support the ongoing significant contribution our industry makes to jobs, economic growth and the quality of life in the ACT.
"But for this to continue, we need good policy and for government to work more closely with the industry on issues of mutual concern rather than the heavy-handed approach it took to the introduction of building regulations last November."
Although confidence in the ACT dipped, it remained four points ahead of the national confidence rating. This rose by five points over the quarter, which reflected renewed optimism about residential values and construction levels, the Property Council said.
Respondents in the ACT were positive about the federal government's performance but sentiment was negative about the ACT government performance.
There was a positive response about about prospects for growth in capital values in office, industrial, hotels and retirement living sectors.
But ACT respondents were negative about the outlook for retail capital values, similar to other markets around Australia.