ANZ/Property Council Survey reveals SA’s property sector is most confident in the country

South Australia remains home to the most confident property sector in the country, according to an industry survey, buoyed by tax cuts and a series of positive economic announcements.

South Australia is home to the most confident property sector in the country, according to a Property Council survey.

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South Australia remains home to the most confident property sector in the country, according to an industry survey, buoyed by tax cuts and a series of positive economic announcements.

The latest ANZ/Property Council Survey’s statewide index has held steady at 144 points this quarter, where a reading of 100 indicates neutral sentiment.

It is the fourth consecutive quarter that confidence in the state’s property industry has topped the country, with all other states and territories reporting falls in optimism this quarter. The national index fell three points to 123.

Improved sentiment in South Australia has also delivered a significant bounce in employment expectations, with local respondents to the survey delivering a more positive outlook for jobs growth within their organisations over the coming year.

The outlook for short-term house price growth remains highest in South Australia, which was the only state or territory to report an increase in price expectations from last quarter.

Property Council SA executive director Daniel Gannon. Picture: Stephen Laffer

Property Council SA executive director Daniel Gannon said the State Government’s commitment to reduce land tax from next year, together with the expected flow-on effects from the state’s $89 billion shipbuilding program, had injected confidence in the local commercial and residential markets.

“Confidence levels are 24 points above South Australia’s historic average, and currently sit 21 points above the national average,” he said.

“Similarly, state economic growth expectations are also significantly higher than most of Australia.

“Importantly, confidence levels in South Australia are 21 points above the nation’s strongest

economy in Victoria.

“This is an important signpost for the rest of the country – South Australia is on the march.”

The ANZ/Property Council Survey was launched in 2011 and includes responses from property industry professionals across the country.

According to the latest results, national economic growth expectations are higher in South Australia than in any other state or territory, while Western Australia is the only state or territory where respondents are more optimistic about their own state’s growth prospects over the coming year.

South Australian respondents are also the most satisfied with the State and Federal Governments’ management of economic growth and job creation.

“Confidence in the State Government to manage the economy has remained in positive territory for the fourth consecutive quarter,” Mr Gannon said.

“This means there is goodwill across the sector, but it also means the new (State) Government needs to deliver its vision to reform and rebuild.”

Charter Hall regional development director Simon Stockfeld said the South Australian property sector was experiencing “unprecedented levels of confidence” on the back of growth in industries including defence, health and renewable energy.

“The recent announcement that South Australia will also be home to Australia’s space agency has only further enhanced confidence in the state’s economy and future,” he said.

“This optimism is set to continue in 2019 and it is likely to result in heightened levels of investment in Adelaide.”

Despite improved sentiment across most sectors of the property market in South Australia, capital growth expectations in the office and industrial sectors continue to trail most other states and territories.