The Property Council survey was conducted two weeks after the floods but showed capital growth expectations for the office sector had improved from the December survey.

But the council’s Queensland executive director, Jen Williams, said the survey also highlighted concerns in the sector about housing supply and affordability.

“When coupled with the fact most people within the industry expect interest rates to increase in the near future, it is vital action is taken now to ensure that the situation does not spiral further,” Williams said.

The sentiment index in the survey fell from 142 to 140, with 100 considered neutral and Williams said this showed resilience in the industry and that the lessons learnt in the 2011 floods had been adopted and allowed the state to bounce back.

Respondents also indicated that their work schedules and staffing levels would increase over the next three months which Williams said reinforced the need to attract skilled workers to Queensland.

ANZ also analysed the survey and found that the number of firms expecting house prices to increase this year had fallen from 67 per cent in December to 40 per cent in March.

“Construction expectations also edged lower but remain elevated given the large pipeline of work.”