Five things the Government should do to lift confidence
The Property Council of Australia has released five recommendations for the State Government to lift confidence across the state’s biggest industry.
The ANZ/Property Council Survey is the leading business sentiment index and for the March 2017 quarter is based upon feedback from 1,524 property professionals across all jurisdictions.
Overall confidence in the state’s property sector increased with a +2 shift (130, up from 128), complemented by a +11 point shift in sentiment in the 12 months to March 2017. National confidence has increased from 130 to 132 in the same period.
“The latest confidence dataset for South Australia reveals some good signs, but also some bad signs,” said SA Executive Director Daniel Gannon.
“National and state economic growth expectations are falling, which means that Governments need to double-down on growth strategies.
“To enable growth and job creation, the State Government should implement five key reforms that will act as a catalyst for confidence and economic development. Without significant reforms of this nature, South Australia’s confidence levels will continue to tread water.”
Mr Gannon said that, based on this quarter’s results, the following must be noted:
- Overall confidence is on par with the national average, and is the second highest level on record for South Australia.
- South Australia’s residential house price growth expectations – though halving since March-2014 – are above the national average and trail only NSW and the ACT.
- Confidence in retail price growth has remained positive for the last three quarters, but remains less than half the national average.
- Forward work expectations are also down on the last three quarters, but are still stronger than any figure recorded between 2012 and 2015.
- Industrial price growth expectations are in positive territory for the first time in nine quarters. The last time SA recorded a positive industrial price growth expectation was Sept-2014.
- The State Government performance index has never been in positive territory.
To lift confidence across the property sector, Mr Gannon recommends the State Government do the following:
- Accelerate the abolition of the final two tranches of non-residential stamp duty;
- Implement the most competitive land tax regime in Australia to improve investment;
- Pursue Council amalgamations to create economies of scale, efficiency and to act as an incentive for Councils to improve their performance and reduce costs;
- Take the urgent steps needed to build resilience into our energy infrastructure; and,
- Take an axe to red tape, including reforms to strata titles, easements, registration of titles, and adaptive reuse of existing building stock.
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence
Property is South Australia’s largest private sector employer and biggest industry, accounting for 10.8% of the state’s economic activity (or $10.5 billion).
It builds prosperity by paying $4.4 billion in wages and salaries – one in six people draw their wage directly or indirectly from property – and one million South Australians have a stake in property
through their super funds.
Property is the largest single industry contributor paying 56.6% of state taxes, local government rates, fees and charges.
Media contact: Daniel Gannon | E firstname.lastname@example.org