Figures from the Valuer General show in the month of February, only 2556 properties were settled in Adelaide. This is the lowest recorded figure since the department started keeping records two decades ago.
As the state government generates revenue from stamp duty on transacted properties, the slow down has forced the state Treasurer to slash more than $140 million of conveyancing revenue from the 2013-14 budget, with further downgrades on the cards likely.
Former Valuer General John Darley, now an Upper House Independent believes the market will be flat for the next five years, and this could create ongoing budget pressures. “My personal view is that this market is going to be flat for the next five years,”
But property revenues may not be the only concern for State Government budgets. They also share GST revenue collected by the Commonwealth and retailers are also experiencing some difficult times.
Data of Household Income Accounts from the ABS show the Household Net Savings ratio is at levels not seen in 25 years. This suggests consumers are in fact clawing back on non-essential discretionary spending, rather than moving all their sales on-line with an Aussie over parity as many brick and mortar retailers suggest. Something has scared consumers and with such a rapid change in household savings, this could suggest there is a lot more pain ahead in terms of retail spending (and GST collection.)
» Housing property sales dip eats into budget – Adelaide Advertiser, 4th April 2011.