The Current Housing Market in South Australia - 2023

Recent years have seen increased interest in South Australia and Adelaide in particular as a place to invest but also as a preferred city in which to live. SA is no longer Australia’s best kept secret; the word is out.

Adelaide is viewed as sought after and stable by investors compared to much of mainland Australia. It may not have the huge real estate highs of the eastern seaboard but it tends not to experience the enormous lows either. Adelaide bubbles along nicely and is solid. It may plateau occasionally, but it rarely goes backwards.

The diverse population is over 1.6 million people, with more immigrants promised to arrive. This is a State to watch as a driver of the Australian economy.

Real Estate in SA is underpinned by strong fundamentals, the growing population, many lifestyle opportunities, and a strong economy.

South Australia is a Festival State, the Arts have been important here since Donald Dunstan was the Premier. Activities across the year include motor sports, arts festivals, international cycling and music events.

In terms of entertainment and real estate, there is something for everyone at a budget to suit.

Investors and those planning to reside in South Australia should watch the progress of

• Median sales statistic in their preferred suburb

• Median rental statistics in their preferred suburb &

• Rental yield growth in their preferred suburb

Additionally, it is wise to connect with a local real estate expert who can help you assess the market opportunities.

The Australian Bureau of Statistics tell us that the total number of dwelling approvals in SA grew by 10% over November 2022, the highest increase amongst mainland states, with decreases in all other states except for Tasmania. Additionally South Australia experienced an increase in dwelling approvals of 15.2% across the whole of 2022 to November, with all other mainland states experiencing significant drops in approvals.

• Western Australia was down 25.5%

• Queensland was down 17.4%

• & Victoria was down 17.4%

Bringing national dwelling approvals down to 15.1%

Source CoreLogic

CoreLogic also reported that house prices have remained strong in Adelaide, falling only 0.4% in December, while larger decreases were noted in other capitals. Adelaide has also recorded the highest median house price increase of all Australian capital cities over 2022 at 10.1%

Stephen Millighan, MP said.

“These latest figures show South Australia’s housing market remains strong especially compared to that of the eastern states, with housing prices remaining at current high levels and demand for new housing being up. South Australia’s housing market has not experienced the volatility of the eastern states and that is good news for property owners. While the strength of the Adelaide property market is great news for those who already own homes, we know we need more supply to help others get into home ownership.”

Many home owners have noticed huge increases in the capital value assessment of their homes, as contained within their council rates assessments.

First home buyers need to be creative in finding solutions to get into the property market, a topic to explore in future blogs.

Sources

CoreLogic

ABS

Domain

Australian Broadcasting Corporation