Confidence in Govt deteriorates heading into 2018

Confidence levels across South Australia’s property sector might be strong, however the sentiment does not carry through to the State Government’s plans or management of future growth.

According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 138 for the March 2018 quarter. More than 1,100 professionals across the country participated.

“Confidence levels are well above South Australia’s average, though still remain below the national benchmark,” said Property Council SA Executive Director Daniel Gannon.

“There has been a quarterly deterioration in headline state and national economic growth expectations and government performance. Expectations around forward work schedules have fallen off a cliff, while retail, house and office capital growth expectations have picked up heading into the new year.

“Based on these results, it’s clear that the State Government needs to change its approach to planning and managing future growth opportunities. This particular sentiment indicator has never been in positive territory and has deteriorated for the fifth consecutive quarter.

“A large quarterly decrease in forward work schedules shouldn’t raise the alarm, but we should keep a close eye on this indicator. Until we focus on targeting and attracting company headquarters or businesses of scale to shift to the Adelaide CBD, South Australia’s jobless rate will continue to hover around the top rather than the bottom.

“This means the State Government needs to do more to encourage international investment with the power to drive the economy and create jobs to ensure we don’t miss out on our share.

“A theme of resilience must be the number one priority heading into next year’s State Election, including job security, energy reliability and population growth.”

Media contact:  Daniel Gannon  |E  dgannon@propertycouncil.com.au

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