Dwelling approvals in South Australia bucked the national trend and increased in June 2016, highlighting the importance of the property sector to the state’s economy.
Data released today by the Australian Bureau of Statistics revealed that the number of dwellings approved fell 2.9 per cent (seasonally adjusted) across the country, but increased by 12.4 per cent in South Australia.
The Property Council’s SA Executive Director Daniel Gannon said the property sector can play an important role in building job creation.
“The metaphor for South Australia’s economy right now is very clear – it’s about hard hats and steel caps,” he said.
“Whilst the fall in approvals across the country points to a future slowdown in jobs flowing from construction, there are budding greenshoots in South Australia.
“The annual change in South Australia delivered even better news with an increase of 26 per cent (seasonally adjusted) compared to a national fall of 5.9 per cent.
“In other states, the blend of increasing property taxes – best highlighted by slapping counter-productive taxes on eastern seaboard foreign investors – and inflexible planning systems is hurting supply.
“However, South Australia’s message to investors is now abundantly clear: if you want to pay lower taxes on property transactions, then invest in South Australia.
“In shaping a thriving future for South Australia, we need to create an environment that turns our state into a hub of innovation and investment. Lowering our tax regime and cutting red tape will help attract investment and lift productivity.
“Policy stimulus measures like extending stamp duty concessions for off-the-plan apartments are strongly welcomed by developers, investors and particularly first home buyers, and future uptake should be noticed in dwelling approvals moving forward.
“Property is a vital part of our economy, and for every typical house that is built, it requires the use of 40 trades and sub trades.
“To create jobs and for South Australia to thrive, we need to build the best tax environment for business and make smart decisions that lead to growth.”
Mr Gannon said dwelling approvals decreased in June in Queensland (2.1%), NSW (4.0%), Tasmania (23.9%), but increased in Western Australia (2.5%), Victoria (4.1%), and South Australia (12.4%) in seasonally adjusted terms. Dwelling approvals also fell in Northern Territory (58.1%) and the Australian Capital Territory (63.6%) (original).
Background information
Property is South Australia’s largest private sector employer and biggest industry, accounting for 10.8% of the state’s economic activity (or $10.5 billion).
It builds prosperity by paying $4.4 billion in wages and salaries – one in six people draw their wage directly or indirectly from property – and one million South Australians have a stake in property through their super funds.
Property is the largest single industry contributor paying 56.6% of state taxes, local government rates, fees and charges.
Media contact: Daniel Gannon | E [email protected]