State of Markets – SA November 2012

SOUTH AUSTRALIA

Fast figures

• 1,650,400: Estimated resident population across the state (2011 Census)
• $62.6 million: Mineral exploration expenditure in March 2011 quarter (ABS)
• 258,000: Number of SA homes to be built over the next 30 years (state government)

Vacancy rates still trending high
South Australia’s vacancy rates remain undesirably high, according to recent property industry statistics.

The higher than average vacancy rates noted in metropolitan Adelaide are the result of a tough economic environment, the Real Estate Institute of South Australia (REISA) said.

In general terms, a three per cent vacancy rate is regarded as a healthy supply/demand balance, but this rate had been exceeded for 12 months in June with vacancies of 3.91 per cent.

“In tougher economic times, both in sales and rentals, we see a pattern of people staying still a little more and not moving unless they really need to,” REISA president Greg Moulton said.

“The main pattern to vacancies definitely relates to price and … this is the critical factor in leasing property quickly.”

SA minerals investment still solid
Recent Australian Bureau of Statistics figures would appear to confirm South Australia as a major target for investment in the minerals industry.

Spending on exploration peaked in 2011/2012, up 28.9 per cent on the 2010/2011 period, while combined spending on mineral and petroleum exploration jumped to more than $500 million.

“Explorers are continuing to invest to unlock new areas of discovery as they search for prospects to add to the state’s 20 approved mines and its substantial pipeline of projects,” minister for minerals resources and energy, Tom Koutsantonis, said.

“In this year’s budget, $2 million was allocated to fund new pre-competitive surveys designed to identify prospective areas in the Gawler Craton [region].”