Governments must 'get serious' about tax and investment settings

Property sector confidence holds firm but survey reveals growing frustration among professionals

Governments must 'get serious' about tax and investment settings

Industry leaders are calling for urgent reforms to planning systems and tax policy to support growth and attract property investment, according to the latest Procore / Property Council survey.

The June 2025 Confidence Index came in at 124, only slightly down from 125 in the March quarter, indicating continued optimism despite a challenging economic backdrop. A score above 100 signals positive sentiment.

While overall confidence remains resilient, the survey of 581 property professionals revealed growing frustration with complex planning processes, foreign investment taxes, and regulatory settings that are seen to hinder development and capital flow.

Property Council chief executive Mike Zorbas (pictured) said the results highlight a sector holding firm but in need of stronger policy direction.

“The property industry is holding its nerve, but we need governments to get serious about tax and investment settings that will help Australian businesses attract overseas capital partners for the assets our cities need,” Zorbas said.

He pointed to a sharp increase in concern over tax settings, which rose to 20%, the highest level since mid-2020. “At a time when state governments have run out of money, taxes on foreign investment deter patient institutional investment that we need to build our cities,” he said.

Zorbas also called planning reform the “single biggest productivity lever” governments can pull to fast-track housing and infrastructure delivery.

The survey found that housing supply and affordability remain top priorities at both federal and state levels. Forward work expectations declined in every state except Queensland, suggesting a possible slowdown in future project pipelines, particularly in Victoria and the ACT.

Capital growth expectations stayed positive for residential, industrial, retirement living and hotel sectors, though sentiment for office and retail properties remained mixed. Access to debt finance and expectations for interest rates improved across most jurisdictions, with Western Australia the exception.

Employment sentiment rose in several markets, reflecting continued demand for skilled workers, despite signs of softening in some regions. Confidence in government performance remains low, with only South Australia reporting positive sentiment for both federal and state levels.

Andrew Rampton, industry transformation director at Procore APAC, said the findings highlight regional variations in confidence.

“The survey shows that confidence is regional, with Queensland and South Australia leading the pack,” he said. “This underscores the need to be agile and responsive to local market conditions. The divergence highlights the importance of real-time insights and data-driven decision-making to stay ahead in a multi-speed economy.”

Zorbas added that a nationally consistent approach is needed to support large-scale investment in housing and infrastructure.

“This is a capital-intensive industry, and Australia will need to continue attracting institutional investment to build the next generation of housing, workplaces and community infrastructure,” he said. “That means streamlining investment pathways and scrapping counterproductive taxes on foreign capital if we want to stay competitive.”

The Procore / Property Council Survey, launched in 2011, is one of Australia’s largest sentiment surveys in the property sector. The June quarter edition was conducted online from June 3 to 18, with 581 respondents from across development, management, agency and property services.

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