Ensure you never miss an issue of the
real estate business bulletin
SA property sector lacks confidence

SA property sector lacks confidence

by Reporter 0 comments

Staff Reporter

Confidence levels are low in the South Australian property industry, on the back of an unstable international economy and high state taxes, a survey has revealed.

The inaugural Property Council/ANZ Property Industry Confidence Survey, undertaken in September this year, has revealed that on a national scale, South Australian property industry confidence ranked among the lowest of all states.

Property Council of Australia (SA Division) executive director Nathan Paine said the survey highlighted several issues for the property sector.

"When asked about their views on the state and national economies, respondents were clear in their view that both would weaken," Mr Paine said.

"Most respondents thought the construction cycle for residential, commercial office, industrial and shopping centres had stalled, and in comparing the performance of various property asset classes, most respondents expected residential capital values would decline in the next quarter."

Moreover, almost 70 per cent of the 460 South Australian respondents believe the current rate of business tax in South Australia is either high or too high, Mr Paine said.

The survey canvassed the views of 4,123 respondents natinally – including owners, developers, agents, managers, consultants and government - across all major industry sectors and regions.

ANZ's chief economist Warren Hogan said although tough global headwinds had sapped local confidence - channelling into falling house prices - South Australians did have cause for optimism.

"Since peaking in late 2010, Adelaide house prices have declined by 5.4 per cent reflecting heightened economic uncertainty and weakened sentiment," Mr Hogan said.

"Nonetheless, fundamentals are supportive with the residential vacancy rate remaining near record lows.

"And despite a relatively subdued outlook for state economic activity, strong fundamentals should limit further downside to house prices. Office markets also remain tight, especially for premium space."

Results from the survey were used to compile the Property Industry Confidence Index, which revealed confidence in South Australia was among the lowest in the nation. South Australia recorded an index reading of 99.6 in the September quarter, significantly lower than the national average of 104.1, and the lowest rating but for Tasmania.

In contrast, Western Australia and Northern Territory rated at 122.3 and 119.8 respectively. 'Neutral' sentiment sits at 100.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
SA property sector lacks confidence
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?