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Strong local and interstate buyer demand, along with low listings, will ultimately lead to a record spring selling season for the South Australian property market, new analysis has revealed.
The latest figures from Raine & Horne have revealed that SA real estate prices have increased by 15.8 per cent since July 2020.
Over the same period, property settlements went up by 37 per cent, while listings numbers are down by 22.5 per cent.
With these positive fundamentals, South Australia is ultimately “set up for record price growth in spring”, according to Raine & Horne general manager James Trimble.
Mr Trimble has attributed South Australia’s growth to the confidence of South Australians and interstate buyers in the local economy, along with the local government’s management of COVID-19 over the last 18 months.
“In Adelaide, we don’t have enough properties for sale to meet the demand of local first home buyers, upgraders or downsizers, let alone interstate buyers seeking to call South Australia home,” he said.
The general manager cited data from March 2021, when Raine & Horne recorded a 30 per cent surge in interstate buyer enquiries compared to the same period last year.
And in the 12 months to June 2021, interstate buyers accounted for over 10 per cent of all homes sold across South Australia.
“Interstate buyers are moving to South Australia because our median price is about 50 per cent more affordable than the Sydney median price and 30 per cent cheaper than Melbourne, while our record on managing COVID is impeccable to date, a factor that is also fuelling interstate demand and local buyer confidence,” Mr Trimble said.
“The combination of more local and interstate buyers and fewer listings coming to market means we expect a bumper spring 2021 selling market for those vendors who choose to list between now and Christmas.”
Raine & Horne Unley co-principal Jacky Yang has confirmed the supply shortage across the state, which she noted as a significant contributor to higher prices across the state, particularly in Adelaide’s inner southern suburbs such as Hyde Park, Unley, Unley Park, Malvern and Parkside.
In fact, this particular region has seen values rise up to 20 per cent in the past 12 months alone due to tight supply mixing with strong demand, according to Ms Yang.
As such, the co-principal encourages investors, particularly sellers, to take advantage of the current market conditions.
“We are still generating appraisals but are encouraging vendors who are considering a sale to take advantage of unprecedented buyer demand to realise some decent capital growth between now and Christmas,” Ms Yang concluded.
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