Confidence in SA returns to pre-COVID levels

Confidence across South Australia’s property sector has rebounded sharply despite last month’s three-day ‘circuit-breaker’ which forced the state into lockdown.

According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 128 for the December 2020 quarter, lifting 30 points since last quarter. The survey includes responses from property industry professionals from South Australia and across the country, and was taken between 16 November and 2 December,

The national average is currently 123 and has increased by 41 points since last quarter. Importantly, confidence levels have increased by 61 points since the March quarter when COVID-19 brought the country to a standstill.

From a South Australian perspective, confidence has skyrocketed from 60 points since the March quarter.

“South Australia has now returned to pre-COVID confidence levels, which is an extraordinary result that gives reason for cautious optimism,” said Property Council SA Executive Director Daniel Gannon.

“Despite the recent ‘circuit-breaker’ lockdown, the property sector has backed Government decision-making and grown in confidence over that time.

“Looking back 12 months, confidence lifted from 101 to 117 points following the land tax debate. As it stands, confidence is stronger today amid a global pandemic than what it was last year.

“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 continues to lift.

“This dataset also reveals that South Australians have great confidence in the State Government managing and planning growth during a global crisis, and it’s the highest level on record.

“Despite recent challenges associated with the Parafield cluster, the nation’s investment spotlight has been shining on Adelaide’s commercial, industrial and residential property market across the year.

“Adelaide has always been a market of resilience, and this year is no different,” said Mr Gannon.

The survey also revealed:

  • National economic growth expectations lifted from -42.4 to 12.3.
  • State forward work expectations have continued in positive territory for the second consecutive period, along with staffing level expectations.
  • Respondents expect COVID-19 to have the most significant impact on the hotels, tourism and leisure sector
  • State retirement capital growth expectations have returned to positive territory for the first time since the March 2020 quarter.
  • The State Government performance index remains positive (at 32.9), and significantly stronger than the national average of 19.3.

 

ANZ/Property Council Survey

December 2020

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