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By the stats: weekly wrap of SA economic data

Jul 09, 2015

Here’s Business Insight’s wrap of recent economic data for South Australia: this week it includes house rents, building approvals, retail sales and debt recovery.

Check back each week for the latest figures and analysis.

Rents flatline in Adelaide

Adelaide rental prices have flatlined in the June quarter.

In the eastern states, Sydney house rental prices have surged to a record high, while in Melbourne they remain at highest-ever levels.

The latest Domain Group Rental Report shows that, by contrast, house rents in Adelaide, Brisbane, Hobart and Canberra were flat over the same period, while those in Perth and Darwin fell.

Rental yields for investors – the rate of income compared to a property’s value – were steady in Sydney, but remain the lowest compared to other Australian capitals.

Median weekly rents for houses
Sydney$530, up 1.9 pct in June quarter
Melbourne$390, flat
Brisbane$400
Adelaide$350, flat
Perth$430, down 4.4 pct
Canberra$450, flat
Darwin$600, down 7.7 pct
Hobart$330, flat
Median weekly rents for units
Sydney$500, flat
Melbourne$370, up 1.4pct
Brisbane$370, flat
Adelaide$290, flat
Perth$375, down 2.6 pct
Canberra$390, flat
Darwin$500, down 3.8 pct
Hobart$270, down 3.6 pct

Retail sales

Retail trade in South Australia has out-performed the national trend over the past year.

ABS statistics released on Friday show retail trade increased by 0.9 per cent in SA in the quarter to May 2015, and was 5.8 per cent higher than for the same period in 2014.

Nationally, retail sales rose by 0.8 per cent in the same quarter and up was 4.4 per cent compared to a year earlier.

Analysis by the South Australian Centre for Economic Studies (SACES) notes that there had been a recent upswing in the performance of cafes, restaurants and takeaway food services, with a 5.4 per cent increase in turnover in the three months to May 2015.

This made it the best-performing retail sector in the quarter, which takes in “Mad March”.

Over the year, though, the story was very different.

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“In comparison, on an annual basis ‘cafes, restaurants and takeaway food services’ was the worst-performing retail sector with a 2.5 per cent decrease in turnover to May 2015,” SACES said. “This suggests the … sector has had improved turnover in recent months compared to the same time last year.”

Over the year, the best performing state or territory was the ACT, followed by South Australia.

Building approvals

The latest ABS data shows that, nationally, the number of dwellings approved fell 0.1 per cent in May 2015. This followed increases, in trend terms, for the previous 11 months.

South Australia suffered the biggest decrease of any state of territory, with approvals dropping by 3.8 per cent. The trend estimate has fallen for the past six months.

The stats caused the Property Council to argue for new stimulation measures in SA.

“South Australia has recorded below average approvals for the 12 month period to May 2015 and has hit the second lowest monthly approval recorded in 25 months,” said the Property Council’s South Australian Executive Director Daniel Gannon.

Debt recovery

This isn’t economic data, as such, but it does provide a worrying indication of the state of the local economy: information released by the Legal Services Commission shows soaring numbers of South Australians are seeking advice on recovering debts.

The commission says that since 2010 it has seen a 78 per cent increase in the number of debt-related legal inquiries.

The commission has produced a detailed DIY guide to debt recovery, with tradies a particularly keen audience.

In general, debt inquiries to the commission are booming. Since 2010, there has been a 154 per cent increase in the number of appointments from people seeking face-to-face legal advice about debt matters.

– InDaily with AAP

 

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