According to the latest Property Council of Australia/Procore sentiment survey, South Australia recorded the strongest national result with its overall confidence index reaching 151 points in December.
The state’s government performance index climbed to +78, substantially outperforming all other regions.
Ray White Group’s head of research Vanessa Rader highlighted South Australia’s exceptional performance in specific sectors.
“SA respondents expect the strongest industrial capital growth at 86 points, nearly triple the national average, and robust gains across retirement living and residential,” Ms Rader said.
South Australia’s forward work schedules remained strong at 49 points, considerably above the national average of 38, indicating sustained development activity in the state.
Queensland and Western Australia also demonstrated strong results, with Queensland recording 143 points overall.
Both states benefited from pro-growth policy settings, with Queensland showing particular strength in office, industrial and hotel sectors.
New South Wales occupied the middle ground with 128 points overall.
The state maintained firm residential expectations at 75 points and stable industrial sentiment at 53 points.
Office sentiment in NSW finally moved into positive territory at 20 points after experiencing prolonged weakness.
Victoria emerged as the clear underperformer, recording the nation’s only decline in forward work schedules for the quarter.
At just 14 points, Victoria’s forward work expectations significantly lagged behind every other mainland state.
The state’s economic growth expectations were deeply negative at -40 points, matched only by the Australian Capital Territory.
Victoria’s office values were expected to fall, with a reading of -5 points, making it one of only two markets anticipating negative office outcomes.
“Most damning is the state government performance index at -65,” Ms Rader said.
“This catastrophic reading reflects deep industry frustration with planning processes, approval delays, and policy uncertainty.”
This poor performance contrasted sharply with positive readings in Queensland (+20), Western Australia (+25), and South Australia’s exceptional +78.
The geographic divergence has created varied investment opportunities across Australia.
South Australia has successfully transitioned from manufacturing to defence, renewable energy, and advanced technology, strengthening demand for industrial assets and CBD office markets.
Queensland’s hotel and tourism assets continue to attract interest ahead of the 2032 Olympics, while Western Australia’s industrial sectors benefit from mining stability and emerging renewable energy manufacturing.
“The survey data confirms what transaction evidence already shows: capital is mobile, and it’s flowing to jurisdictions that demonstrate policy competence and growth-friendly settings,” Ms Rader said.
