The regional real estate market saw a surge in activity and demand during COVID-19. How have these markets fared in more recent times?
The South Australian property market has positioned itself as a lucrative and stable option for investors and purchasers alike. CEO, Residential and Commercial of Century 21 SouthCoast, Century 21 City and Century 21 NorthEast in South Australia Tony Bezuidenhout explains why:
- Steady Price Growth
South Australia's property market has proven to be a reliable investment option, with consistent price growth for both houses and units. Property prices in Adelaide and regional markets have seen impressive increases, fueled by various buyer types: first home buyers, upsizers, downsizers, and investors.
- Robust Economy
The state's economy plays a crucial role in supporting the property market. South Australia has experienced a steady rise in population and Gross State Product. Despite the challenges posed by the pandemic, the state has avoided significant economic repercussions.
- Impressive Growth in Regional and Metropolitan Areas
Regional South Australia has seen a solid rise, breaking records for median house prices. Motivated regional purchasers are engaging in areas like Port Lincoln, contributing to heightened demand.
South Australia's property market shines as a beacon for those seeking opportunities for growth and stability with record-breaking prices and impressive growth. However, it is pertinent to consult up-to-date market reports and gain expert analysis for a comprehensive understanding of the market and its future outlook.
How has feasibility for residential development sites been impacted by interest rate instability and building costs in regional areas?
Interest rates have played a significant role in determining the feasibility of residential developments. When rates rise, borrowing costs increase which affect developers' ability to finance projects. Higher mortgage costs may deter potential home purchasers, reducing demand.
Building materials have become more expensive and may continue to increase. This combined with labour shortages contributes to delays and increased costs. In some instances, houses sold off the plan are being cancelled due to rising costs after the initial contract was signed.
Interest rate fluctuations and building costs have impacted the feasibility of residential development in South Australia. Developers are adapting by exploring mixed use options and diversifying into industrial projects. The landscape is evolving, and strategic decisions are crucial for sustainable growth.