South Australia recorded the nation’s highest level of property-sector confidence for the fourth consecutive quarter.
The state has maintained a high ranking despite the national confidence hitting a six-year low. State-wide confidence in South Australia sits at 137 for the June quarter, according to the latest ANZ/Property Council Survey.
“Despite every state recording a quarterly decrease, South Australia has remained steady and is still the most confident market in the nation,” said Property Council SA Executive Director Daniel Gannon.
Results showed that confidence levels are nearly 30 points above South Australia’s historic average and currently 22 points higher than the national average.
In addition, state economic-growth expectations are significantly higher than the majority of the country.
Notably, confidence levels in South Australia are 28 points above New South Wales and 23 points above Victoria—the nation’s strongest economy.
Gannon disclosed five reasons why confidence in SA is sitting at historic levels. They include the coming of Australian Space Agency – a major catalyst for investment and economic opportunity—in the state; a skyline-shaping $551m City Deal focused on innovation, research, entrepreneurialism, technology and the arts; more than 12 full months of positive confidence in the state government to plan and manage growth, with another significant quarterly increase; ongoing growth and confidence in South Australia’s residential sector. Finally, the state’s investment future also brightened when defence spending was augmented, having generational benefits.
“The survey’s results also revealed that residential capital growth expectations are in positive territory – the only state in the country to do so. Confidence in the state government to manage the economy has remained in positive territory for the fifth 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 said.
