A new national survey has identified Western Australia's office sector as the most likely in the country to provide a return to investors over the next year.
The inaugural Property Council/ANZ Property Industry Confidence survey showed a large divergence in industry sentiment across the country.
Western Australian and Northern Territorian respondents were the most bullish about the strength of their property markets, while the mood was not so bright in NSW, QLD or the ACT, which recorded only slightly positive outlooks.
Property Council chief executive Peter Verwer said nationally, property investment confidence was “in the doldrums”.
“Property markets are nervous about global financial instability and a stalling domestic economy,” Mr Verwer said.
“The perception that Australian families and businesses are sitting on their wallets has resulted in a lacklustre outlook for the next quarter.”
The survey revealed a large variation across property sectors with office markets in WA and Queensland creating the most bullish sentiment.
The views on residential property were mixed - with solid returns expected due to shortages of supply and weak new building conditions.
Industrial property sat middle of the pack, the Property Council said.
The poll of 4,000 property professionals across Australia was conducted in September