Property green shoots starting to sprout
Green shoots are starting to sprout across South Australia’s property sector with an uplift in confidence in the latest quarter.
The ANZ/Property Council Survey is the leading business sentiment index and for the June 2017 quarter is based upon feedback from 1,606 property professionals across all jurisdictions.
Overall confidence in the state’s property sector increased with a +3 point shift (133, up from 130), complemented by a +11 point shift in sentiment in the 12 months to June 2017. National confidence has increased from 132 to 135 in the June 2017 quarter.
“Green shoots are starting to sprout across South Australia’s property sector with confidence levels almost on par with the national average,” said Property Council SA Executive Director Daniel Gannon.
“National and state economic growth expectations have risen quarter-on-quarter, as have office, residential, industrial, retail and hotel capital growth expectations.
“Whilst this is seemingly good news, some of these indicators have jumped around in recent quarters, highlighting the need for a strategic long-term approach to planning and managing state growth.
“Based on this survey, property professionals believe energy efficiency is a critical issue for the Government, with almost twice as many respondents highlighting its importance since the previous quarter.
“This comes as South Australians still face an uncertain energy future in the wake of last September’s statewide blackout.”
Mr Gannon said that foreign property sales involving the residential, commercial, retail and hotel sectors have diminished and are well below the national average.
“The analysis here is simple. Despite overall confidence increasing, there is a distinct lack of foreign investment coming into South Australia and this should be a signpost for policy-makers,” he said.
“South Australia sadly boasts the highest land tax rates in the nation and – when combined with the ongoing insecurity about our state’s energy infrastructure – this is potentially discouraging foreign investment in the residential, commercial, retail and hotel sectors.”
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.
12 month Change in Confidence
Media contact: Daniel Gannon |E [email protected]
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence