Business Outlook for VIC Property Sector on the Rise

The business sentiment for the Victorian property sector has risen for the third quarter in a row, according to new figures from the Property Council of Australia-ANZ Property Industry Confidence Survey.

According to the most recent data, respondents' sentiments rose to 117 for the June 2013 quarter, compared with 99 for the March quarter.

This, the survey noted, showcases a rise in the state's real estate market - although many of those polled also expressed concern about construction costs.

Some 46 per cent of respondents believe that expenses related to property construction will rise in the next 12 months, which could have a negative impact on property investment unless corrections can be made in the near-term, according to the Property Council of Australia's Victorian executive director Victoria Cunich, who called the rise in sentiment "cautious optimism".

Ms Cunich said: "The Property Council hopes next month's state budget tackles this challenge by placing downward pressure on construction costs. Reductions in planning delays, industrial disputation and bureaucratic red tape would make a big difference to the sector’s long term outlook and investment levels."

Help could also come in the form of a cash rate cut - the Reserve Bank of Australia's Monetary Policy Committee is set to meet again on the first Tuesday of May.