South Australian Economic Confidence Up

The latest ANZ/Property Council quarterly survey revealed confidence in South Australia’s property industry is now the strongest in the nation – jumping from 122 points in Q1 2023 to 133 points in Q2.

South Australia is now level with Western Australia and its economic confidence exceeds that of other mainland states and territories (a score of 100 is considered neutral).

Despite concerns about national economic growth, increasing interest rates and access to debt finance, respondents to the survey reported increased forward work schedule expectations and growth in the South Australian economy over the next 12 months. Capital values across numerous asset classes are also expected to spike in a pronounced way over the same period.

Property Council’s South Australian Executive Director Bruce Djite said the Q2 results were reason for cautious optimism, adding: “It’s encouraging to see growing confidence in the South Australian industry, and we have several reasons to be positive.

“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.”