South Australia has delivered the nation’s highest level of property sector confidence for the fourth consecutive quarter – and here are five reasons why.
According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 137 for the June 2019 quarter, maintaining its nation-leading position on last quarter. The survey includes responses from property industry professionals from South Australia and across the country.
“Despite every state recording a quarterly decrease, South Australia has remained steady and is still the most confident market in the nation,” said Property Council SA Executive Director Daniel Gannon.
“Confidence levels are almost 30 points above South Australia’s historic average, and currently sit 22 points above the national average. Similarly, State economic growth expectations are also significantly higher than the majority of Australia.”
“Importantly, confidence levels in South Australia are 23 points above the nation’s strongest economy in Victoria and 28 points above NSW.
“This is an important signpost for the rest of the country. At a time when the Australian Space Agency is coming to town and City Deals are being inked, South Australia is looking to take-off.”
Mr Gannon has provided five reasons for confidence sitting at historic levels:
- Adelaide will become the new home of the Australian Space Agency – a major catalyst for investment and economic opportunity.
- A skyline-shaping $551m City Deal focused on innovation, research, entrepreneurialism, technology and the arts.
- More than 12 full months of positive confidence in the State Government to plan and manage growth, with another significant quarterly increase.
- Ongoing growth and confidence in South Australia’s residential sector continues.
- The state’s investment future brightened when defence spending augmented, having generational benefits.
“The survey’s results also revealed that residential capital growth expectations are in positive territory – the only state in the country to do so,” said Mr Gannon.
“Confidence in the State Government to manage the economy has remained in positive territory for the fifth consecutive quarter. This means there is goodwill across the sector, but it also means the new Government needs to deliver its vision to reform and rebuild.”
Other findings from the survey include:
- National economic growth expectations are higher in South Australia than any other jurisdiction.
- Expectations around staffing levels for the next 12 months are higher than the national average.
- Office capital growth expectations have increased significantly, representing the highest outcome of all states.
Confidence Index March 2019