SA’s property sector confidence dips 8%
Confidence levels in South Australia’s property sector have dropped almost eight per cent in the March 2015 quarter, according to a leading indicator of business sentiment.
The ANZ/Property Council Survey‘s leading index for the March 2015 quarter decreased by nine points – or almost eight per cent – to 114 on the confidence index.
SA Executive Director of the Property Council, Daniel Gannon said this result takes South Australia back to September 2014 quarter levels and continues what has been a tumultuous confidence period in this state.
“South Australia’s nine point reduction in confidence levels was the worst result of all states across the nation,” said Mr Gannon.
“Not only that, but this result means that South Australia now trails the national average by 18 points at a time when we need to drive confidence and momentum.
“As for shift in sentiment over the past 12 months, South Australia has recorded a net decrease of 16 points, only better than West Australia’s 22 point drop. The average national decrease in this quarter was eight points.
“Since last quarter’s results, South Australia’s forward work schedule, staffing level, national and state economic growth, house, office and industrial capital growth expectations have all taken a hit.
“That’s why this industry is calling for the abolition of anti-growth taxes, such as stamp duty, and will continue to fight for growth-orientated reforms like repealing out-dated regulations, freeing up shop trading hours, and growing our state’s population.
“This survey continues to find that the State Government’s planning and management of economic growth remains in negative territory, and has remained so since June 2014.
“The State Government recently committed to reviewing our state’s taxation regime – the right economic shake-up will drive stimulus and create jobs.
“Furthermore, the State Government has an opportunity through the planning review process to drive growth through sensible reform – it’s time to shift the planning power balance in the best interests of progress and development.
“On the contrary, retail, retirement living and hotel capital growth expectations have increased since last quarter’s results.
“Put simply, the property and development sector wants to say goodbye to business as usual – and we’d encourage the State Government to do the same.
“Importantly, we need to become a ‘yes’ industry; but to do so we need the right business conditions and business settings.
“And becoming a ‘yes’ industry isn’t just for the property industry – it’s also for the half a million South Australians who collectively own major segments of the state’s most valuable commercial property assets through their superannuation funds.”
For comment:
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Daniel Gannon |
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Full results available at www.propertyoz.com.au/confidence