SA property industry tops confidence table but concerns remain
South Australia’s property industry has recorded the highest level of confidence in the nation, but concerns on housing supply, affordability and taxes are sticky.
South Australia recorded the highest confidence index scores in Procore/Property Council of Australia’s March 2025 industry sentiment survey, with confidence rising by 9.3 per cent to 141 points.
This trumps Western Australia (136 points), Queensland (133 points) and New South Wales (128 points), and is above the ‘neutral’ level of 100 points. The national level for March 2025 was 125 points.
Via Procore/Property Council
But while South Australian industry confidence was high, respondents said housing supply and affordability, followed by property taxes and charges, were the most critical issues they would like addressed by the state government.
Property Council South Australian executive director Bruce Djite said the two issues were linked.
“This survey reinforces why the Property Council has called for a Productivity Commission review of the impact of taxes and charges on the delivery of homes in South Australia,” Djite said.
“If South Australia wants to be both liveable and affordable, then the Malinauskas Government should examine the impact that taxes, charges and other statutory costs have on the feasibility of developing new housing.
“Adelaide is now Australia’s second-most expensive housing market and only trails Sydney when you consider incomes relative to housing prices, and the reality is statutory costs make up at least 30 per cent of building a new entry-level home.”
Via Procore/Property Council
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He said key workers would struggle to afford a home in Adelaide as costs rise.
“We’ve got a situation in Adelaide now where an ambulance officer and a nurse with a combined household income of just above $150,000 would be priced out of the housing market in suburbs like Port Adelaide, Seaton, Mount Barker, Christies Beach and Hallett Cove,” he said.
“While the results of the survey mean the industry is feeling confident in terms of asset appreciation, the cost of developing new housing stock remains a hurdle both for developers in terms of feasibilities, and for those looking to buy a home.”
