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Burgeoning business confidence boosts property market expectations

By Bianca Dabu 21 April 2021 | 1 minute read

Confidence in South Australia’s real estate has improved by over 10 per cent in the past three months, with business confidence leading the rebound.

confidence in SA property market

The latest ANZ/Property Council Survey revealed that property confidence in South Australia has increased to 142 index points for the March 2021 quarter – 14 points or 11 per cent higher compared with the previous quarter. A score of 100 is considered neutral.

The current figure has surpassed the state’s historic average of 119 index points, and has landed only seven points shy of the strongest result on record at 149.

According to executive director Daniel Gannon, the statewide lift in confidence has largely been driven by brewing confidence in the business sector.

In the past 12 months, business confidence has increased by 135 per cent – the biggest annual increase on record in South Australia.

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The state was also alone in recording a positive result for office price expectations, soaring by 109 per cent from the previous quarter. This is also the first positive result in this category across Australia since December 2019.

“Despite some sections of the business community still facing a period of uncertainty, this data reveals an extraordinary recovery given what the community faced last year.

“If we rewind 12 months to last Easter, South Australians stayed home to save lives. Fast forward a year and our state is one of the least restricted and therefore one of the most open economies in the world,” Mr Gannon said.

The executive director highlighted South Australia’s bid to leverage on business innovation and organisational nimbleness to further the revival of the economy as confidence continues to improve.

Mr Gannon also said the state aims to stimulate spending and jobs growth by bringing life back to the CBD.

“Business confidence is trending upwards, investors are investing, and while CBD office occupancy is sitting around 70 per cent, we can help stimulate spending and save jobs by filling up our cafes, restaurants and other outlets in the CBD.

“South Australia is now developing a strengthened narrative for renewed confidence and economic activity.

Adelaide has always been a market of resilience, and this year is no different,” he concluded.

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Burgeoning business confidence boosts property market expectations
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