Four reasons why confidence is up
South Australia has delivered the nation’s highest level of property sector confidence for the second consecutive quarter – and here are four reasons why.
According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 144 for the December 2018 quarter, down slightly from the historic high of 149 last quarter. The survey includes responses from property industry professionals from South Australia and across the country.
“While other states have seen significant drops in confidence since last quarter, South Australia has remained relatively 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 almost 20 points above the national average. Similarly, State economic growth expectations are also significantly higher than the rest of Australia.”
Mr Gannon has provided four reasons for confidence sitting at historic levels:
- South Australia is the only jurisdiction in the country to not charge stamp duty on commercial property transactions.
- The state’s investment future brightened when defence spending augmented, having generational benefits.
- Punitive state taxes on car parks and banks did not feature in the State Government’s FY19 Budget.
- An important first step has been taken to reform land tax, with a budgeted $96m commitment to raise thresholds and lower rates.
“The survey’s results also revealed that South Australia’s residential property sector recorded an increase in residential capital growth expectations and was the only jurisdiction 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 third 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 forward work schedules have increased since the last quarter and are again the highest in the nation.
- South Australia was the only State to record an expected increase in retail sector capital growth expectations.
Confidence Index December 2018
Media contact: Daniel Gannon | M 0421 374 363 | E [email protected]