Confidence cautiously rebuilds in wake of COVID-19

Confidence across South Australia’s property sector is slowly returning – and it’s happening at a faster rate than every other state in the nation.

According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 86 for the September 2020 quarter, lifting 26 points since last quarter. The survey includes responses from property industry professionals from South Australia and across the country.

The national average is currently 76, and has increased by 14 points since last quarter. Importantly, South Australia recorded the biggest quarterly increase of all states in the country.

South Australians are also the most optimistic when it comes to the future impacts of COVID-19, with 68 per cent expecting things to improve over the next three months, in comparison to 60 per cent nationally.

“It’s going to take some time to return to pre-COVID confidence levels, but the current trajectory gives reason for cautious optimism,” said Property Council SA Executive Director Daniel Gannon.

“However, it is vital for all levels of government to continue to work with the sector to ensure that landlords and tenants alike survive this hibernation period – rather than picking favourites.

“Over the past quarter, 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 returns.

“This dataset also reveals that South Australians have great confidence in the State Government managing and planning growth in the midst of a global crisis, and it’s climbed significantly since last quarter.

“For these reasons, if the AFL is planning an alternative location for this year’s Grand Final, look no further than the Adelaide Oval.

“Adelaide is home to a world-class iconic stadium, we haven’t seen a case of community transmission in almost 120 days, and as a state we represent the mid-point between the east and west coasts. Hosting the ‘big dance’ here just makes sense.”

The survey also revealed the following:

  • National economic growth expectations lifted from -83 to -66.9
  • State and national forward work expectations remain in negative territory
  • Respondents expect COVID-19 to have the most significant impact on the hotels, tourism and leisure sector
  • Residential capital growth expectations remain in negative territory, after a high in South Australia during the March quarter
  • The State Government performance index enjoyed a significant increase, jumping from -1.9 percent to 32.3 per cent – giving the State Government the second highest confidence rating in the nation, topped only by WA

 

 

ANZ/Property Council Survey

September 2020

Media contact:  Daniel Gannon | M 0421 374 363 |  E dgannon@propertycouncil.com.au