The latest approvals data provides a glimpse of optimism for South Australia’s building and construction industry.
Building approvals
The value of residential building approvals has increased 16% compared to the previous 12 months. However, this is mainly due to increasing costs. The number of approvals has risen 7% for the 12 months to July which is 4% above the State’s long term average.
There appears to be more activity at the premium end of the market, with cost pressures holding back activity at the more affordable end.
Greater Adelaide 30-year plan update
A draft update to the Plan builds on the existing principles, recognises the significant reforms introduced in the Planning, Development and Infrastructure Act 2016 as well as complementing the Government’s stamp duty relief initiative for off-the-plan dwellings.
The draft plan simplifies the 89 recommendations in the 2010 Plan to six high level targets.
These high level targets are as follows:
- Protecting our valuable agricultural and environmental lands by increasing infill from 70% of new developments to 85%.
- Linking to public transport with 60% of new housing in proximity to quality services, up from 41%.
- Promoting active lifestyles by facilitating pedestrian and cycling corridors.
- Increasing the proportion of residents living in “walkable” suburbs
- Greening the city by increasing canopy cover.
- Increasing the diversity of housing choice by 25%.
Foreign Investor Taxes in SA Ruled Out
The State Government has ruled out extra charges for foreign investors on property transactions. South Australia has decided not to follow New South Wales, Queensland and Victoria in imposing surcharges on foreign investment.
This provides another competitive advantage in SA when it comes to property based taxes.
As part of its state budget, the New South Wales government introduced a 4% stamp duty surcharge for foreign investors, while the Queensland government introduced a 3% surcharge and Victoria increased its stamp duty tax from 3% to 7%.
Next article: A message from Global Head of Real Estate and Construction, Sian Sinclair.
