The Property Council of Australia recently revealed some reasons behind the record level property sector confidence for South Australia (SA), amid the significant declines recorded in other states.
While the latest ANZ/Property Council Survey showed that the state-wide confidence in SA slightly dropped from 149 last quarter to 144 for the December 2018 quarter, confidence has remained relatively stable, and it remains the most valued market in Australia.
“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,” Property Council SA Executive Director Daniel Gannon shared.
This figure marked the nation’s highest level of property sector confidence for the second consecutive quarter. Gannon cited four factors that drove this outstanding rating.
He pointed out that SA is the only state in the country that does not charge stamp duty on commercial property transactions.
Second, outlook on the state’s investment became more positive when defence spending was increased.
In addition, corrective state taxes on car parks and banks were not featured in the State Government’s budget for the financial year 2019.
Lastly, and perhaps most importantly, SA has started its plan to reform land tax, with an allotted $96 million to raise thresholds and lower rates.
The Property Council also highlighted that SA was the only state to see an increase in residential capital growth expectations.
“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,” Gannon concluded.
The ANZ/Property Council Survey includes responses from property industry professionals from South Australia and across the country.
