Confidence in SA setting positive new benchmarks
Confidence across South Australia’s property sector has improved by 135% in 12 months as the state continues to rebound from the COVID-19 pandemic.
According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 142 for the March 2021 quarter, lifting 14 points – or 11% – since last quarter. The survey includes responses from property industry professionals from South Australia and across the country and was conducted between the 15th March and 31st March 2021.
Confidence levels in South Australia are currently 23 points higher than the state’s historic average (119) and only seven points shy of the strongest result on record (149). A score of 100 is considered neutral.
“Business confidence has improved by 135% in 12 months – the biggest yearly increase on record in South Australia,” said Property Council SA Executive Director Daniel Gannon.
“Despite some sections of the business community still facing a period of uncertainty, this data reveals an extraordinary recovery given what the community faced last year.
“Over the past 12 months, we’ve learned a lot about business innovation and organisational nimbleness. Here in South Australia, we are comparatively safe, healthy and resilient, we’re getting back to business and reopening our economy as confidence continues to lift.
“If we rewind 12 months to last Easter, South Australians stayed home to save lives. Fast forward a year and our state is one of the least restricted and therefore one of the most open economies in the world.
“Business confidence is trending upwards, investors are investing, and while CBD office occupancy is sitting around 70%, we can help stimulate spending and save jobs by filling up our cafes, restaurants and other outlets in the CBD.
“South Australia is now developing a strengthened narrative for renewed confidence and economic activity.”
Mr Gannon said the latest ANZ / Property Council dataset also reveals that business owners have great confidence in their forward work schedules and staffing levels for the coming 12 months.
“Adelaide has always been a market of resilience, and this year is no different,” concluded Mr Gannon.
The survey also revealed the following:
- 12-month staffing level expectations have increased by 37% since last quarter, and 300% since March last year.
- Forward work schedule expectations have improved by 249% since March last year despite dropping by 3.3 points since last quarter.
- National economic growth expectations have improved by 185% since last quarter, while state economic expectations lifted by 140% in 12 months and recorded its strongest quarterly result since Dec-2018.
- Residential house price expectations have strengthened, improving by 136% since last quarter and more than 550% in 12 months. This also represents the strongest quarterly result on record anywhere in the country.
- South Australia recorded the only positive result for office price expectations across the country, improving by 109% since last quarter. This also represents the first positive result across Australia in this category since Dec-2019.
- Industrial price growth expectations are understandably strong, increasing by 489% since last quarter, reflecting the biggest quarterly increase in Australia.
- Retirement living price growth expectations have exploded by 1,820% since last quarter.
- Confidence in the Federal and State Governments to manage and plan for future growth remains historically strong.
Media contact: Daniel Gannon | M 0421 374 363 | E [email protected]