The latest NAB Business Survey has revealed South Australia continues to lead the charge in business confidence measures.
The independent monthly survey showed business confidence in South Australia rose 7 points last month, with New South Wales and Western Australia following by increase of 3 points. Victoria remained steady while confidence in Queensland fell 4 points.
The August Bank SA State Monitor Survey additionally showed business stability rose 2 per cent to the highest level since May 2010, and an 8 per cent increase in business expansion indicates strong employment growth in the next quarter.
The establishment of the Australian Space Agency at Lot Fourteen and the $551 City Deal supporting innovation, research, entrepreneurialism, technology and the arts at the old Royal Adelaide Hospital site have been major catalysts for investment and confidence. The presence of the Space Agency is set to favourably position local businesses to capitalise on the US$345 billion global space industry, with the Agency aiming to create 20,000 jobs by 2030.
The ongoing strong confidence in South Australia bucks the national business sector trend of significant downward momentum in confidence since early 2018. South Australia consistently surpassed other states across all confidence measures throughout the year, including historic peaks in confidence in the property sector, economic growth expectations and economy management. The ideal market conditions, including the roll out of revolutionary infrastructure Ten Gigabit Adelaide, saw strong interest from both interstate and international investors, with CBD property sales reaching nearly $1 Billion in 2018. Adelaide CBD office vacancy has also been dropping for five consecutive periods as companies seek to establish headquarters in the city.
“Ten Gigabit Adelaide and $3 billion of investment in the north-western sector of the CBD over the past decade, has transformed the city and subsequently resulted in an attractive proposition for capital,” said Guy Bennett, Knight Frank’s Partner, Head of Institutional Sales, SA and Victoria.