South Australia is shaping up to be a hotspot for property investment globally given the acceleration of its economic rebound, according to a study from ANZ
The study said the state's housing activity has reached a historic high on the back of robust interstate migration and an improving consumer sector. In fact, the volume of real estate transactions in the state has grown by 90.6% during the first quarter of the year, posting the biggest growth among capital cities.
"The housing component is at historic highs. Living in South Australia may have become more appealing, because of how well it managed the pandemic, apart from the November blip. As such, South Australia’s Stateometer housing component is the second strongest across the states, after Western Australia," the study said.
Besa Deda, chief economist at BankSA, said the high level of construction and housing activity continues to be a major driver of the state's economy.
"The lift in approvals will help generate a strong pipeline of residential construction activity and flow on to jobs which should sustain, if not lift, the level of employment in the state," she said.
In the same way, the improvement in the labour market remains a significant force in lifting the consumer sentiment, and therefore the housing market activity.
Over the past 12 months, South Australia created 43,000 jobs. Furthermore, unemployment in the state has dropped to 5.7%, which is close to the 5.5% national rate.
Treasurer Rob Lucas said by the end of April, the state reported a 13.4% increase in jobs since the height of the COVID-19 pandemic. This growth was the second highest among all states.
"The Marshall government is investing $4bn in economic stimulus over two years to turbo charge the state’s COVID rebound, and independent reports like this show our positive plan is working,” he said.
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