Properties across regional SA are as popular as ever.
Many Covid trends have been abandoned and forgotten over the past few years but there is one that is as popular as ever – buying property in regional SA.
Home price growth across the state’s regions has mostly kept pace with Adelaide’s over the past few years, yet properties further from the city remain significantly more affordable.
Industry experts say affordability is one of the main reasons people are still turning to regional areas, followed by lifestyle and rental yields.
Latest PropTrack data shows regional SA’s median dwelling price (for houses and units combined) climbed 0.6 per cent in March, 12.2 per cent over the past year and 95.4 per cent over the past five years to $504,000.
Meanwhile, Greater Adelaide’s rose 0.4 per cent over the past month, 14.6 per cent over the past year and 90.5 per cent over the past five years to $937,000.
Ray White SA chief executive Matt Lindblom.
Ray White SA chief executive Matt Lindblom said affordability was driving some into regional SA, while others found the strong rental yields appealing.
He said yields have always been higher in regional areas but it was at the cost of capital growth, which wasn’t the case anymore.
“In SA, our regional centres have been quite small too but they’re growing now,” Mr Lindblom said.
That was also making those areas more attractive, he said.
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“I think it (regional price growth) will continue,” Mr Lindblom said.
He said there were two main types of buyers in regional areas – those who had work flexibility so were able to maintain city-based jobs remotely, as well as baby boomers chasing lifestyle benefits and cash.
Interstate buyers’ agents seeking regional properties within a certain price bracket with high yields were also out in force, Mr Lindblom said.
Real Estate Institute of South Australia chief executive Andrea Heading.
Real Estate Institute of South Australia chief executive Andrea Heading said some areas were more popular than others, with cost of living playing a large role for owner occupiers – an issue that won’t be helped by the rising fuel prices driven by the Middle East war.
“It depends on what the cost is to live regionally too,” she said.
“From a coastal and lifestyle perspective, still Victor Harbor does really well and the Yorke Peninsula does really well too.”
Ms Heading said the AUKUS deal would also have an impact, as those involved in the project turned to the more affordable northern suburbs and regional fringe areas to live.
“It’s good for investors because it’s quite a tight rental market too,” she said.
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