Tuesday 11 July 2023
MEDIA RELEASE
South Australia – The highest level of confidence growth in the nation
ANZ/Property Council’s quarterly survey has revealed confidence growth in South Australia’s property industry is now the strongest in the nation.
Jumping from 122 points in the March quarter to 133 points, South Australia is now level with Western Australia and the industry’s confidence exceeds that of other mainland states and territories. A score of 100 in the Confidence Index is considered neutral.
Despite concerns about national economic growth, increasing interest rates and access to debt finance, respondents reported increased forward work schedule expectations and growth in the South Australian economy in the next 12 months. Capital values across numerous asset classes are also expected to spike in a pronounced way over the next 12 months.
Property Council’s South Australian Executive Director Bruce Djite said the June quarter results were reason for cautious optimism.
“It is encouraging to see growing confidence in the South Australian industry, and we have several reasons to be positive,” Mr Djite said.
“Nevertheless, large increases in capital growth expectations in South Australia are fundamentally being driven by chronic undersupply in the housing and retirement village market, as well as a shortage of land suitable for industrial premises, which will be a handbrake on jobs growth.
“Despite office occupancy rates being higher than the rest of the country, office capital growth rate expectations remain in negative territory in South Australia with the persistence of the working-from-home trend.
“Never has it been more vital for the state government to collaborate and deepen its engagement with our industry in addressing supply issues given how critical property is to the economy,” he said.
Price growth expectations for South Australian asset classes for the June quarter were:
Asset class | June 2023 – Quarter Results | March 2023 – Quarter Results |
Residential | 39.6 | 5.6 |
Office | -4.2 | -10.3 |
Industrial | 27.2 | 4.4 |
Hotels | 40.3 | 9.1 |
Retirement Living | 49.3 | 30.9 |
The ANZ/Property Council survey captures the sentiments of members of the property industry around the country quarterly. The June 2023 Confidence Index State and National results are shown below with comparisons to the March quarter.
Media contact: Richard Fowler | 0402 659 892 | [email protected]