SA property confidence drops again

SA property confidence drops againConfidence levels in South Australia’s property sector have dipped for the second consecutive quarter, according to a leading indicator of business sentiment.The ANZ/Property Council Survey’s leading index for the June 2015 quarter decreased by four points – or almost four per cent – to 110 on the confidence index. Meanwhile, the national average is 131 points, which is a slight reduction from 132 last quarter.SA Executive Director of the Property Council Daniel Gannon said South Australia’s confidence levels have decreased by 13 points – or 10.5 per cent – since December 2014.”There’s no denying that South Australia is a confident state, and through tax and planning reform opportunities we have a chance to improve on this level,” said Mr Gannon.”The June quarter result also means that South Australia now trails the national average by 21 points at a time when we need to drive confidence and momentum.”Mr Gannon also said that South Australia has experienced at least two consecutive quarters of deteriorating sentiment across six key areas, as listed below. ConfidenceForward work schedule expectationsNational economic growth expectationsState economic growth expectationsOffice capital growth expectationsIndustrial capital growth expectations”This quarter’s results point to a worrying trend in dwindling confidence,” he said.”But if we’re able to implement the right tax reform package, put in place a lean and efficient planning system and increase South Australia’s business attractiveness, we’ll bounce back.”And we’ll bounce back despite boasting the second worst national and state economic growth expectations in the country.”The property industry is calling for the abolition of anti-growth taxes, such as stamp duty, and will continue its fight for growth-orientated reforms to create jobs, prosperity and strong communities.”This survey continues to find that the State Government’s planning and management of economic growth is still in negative territory, and has remained so since June 2012. “The State Government has committed to reviewing our state’s taxation regime – the right economic shake-up will drive stimulus, create jobs and grow confidence.”On the contrary, retirement living capital growth expectations has increased since last quarter’s results.”What this means for the retirement sector is that we need to be very careful about the Retirement Village Act reforms currently being mooted. This quarter’s results again demonstrate that this is a growth sector, and a source of positive sentiment.”The multiple reform opportunities in the pipeline mean that South Australia is a ‘watch this space’ jurisdiction.”Media contact: Daniel Gannon | M 0421 374 363| E [email protected]