Real estate values rocket ahead in Port Augusta

SURGE: Homes are more valuable in Port Augusta because of a surge in renewables and mining investments in the area.
SURGE: Homes are more valuable in Port Augusta because of a surge in renewables and mining investments in the area.

Dizzying heights have been achieved in real estate statistics for Port Augusta in the wake of surging renewables and mining developments in the area.

The median house price in the first quarter of this year rose an incredible 36 per cent compared with the same time last year.

According to a study by the Real Estate Institute of South Australia, the median house price is now $272,000 compared with $200,000 a year ago.

The comparison involved 27 house sales in the first quarter last year and 28 sales in the first quarter this year.

"It was a virtually identical sample number," said institute president Brett Roenfeldt, adding that this made the result more authentic.

He said growth in renewables projects, such as wind and solar farms, and mining ventures had boosted buyer and vendor confidence in the real estate market.

"A phenomenal amount of money is flowing into the Iron Triangle," he said.

"Investors are saying, 'we have to be in on this'. By the look of it, there has been solid demand for property."

He described the upsurge in values in Port Augusta as "absolutely phenomenal" and attributed it to massive infrastructure projects. "All of a sudden investors have been sniffing around and saying, 'here is an opportunity to stitch up some property because we think there is going to be enormous interest with the property market'," he said,.

Capital values for all South Australian properties increased an average 4.79 per cent last financial year while site values rose an average 6.16 per cent, according to the 2019-20 general valuation.

This marks the 19th yearly average increase in both valuations in the past 20 years.

Rural properties recorded the highest growth across all land uses with an average 11.26 per cent capital value increase.

The trend of country areas leading house price growth is set to continue as capital cities battle against sharp declines.

Of 550 local government areas, a distinct majority of top-performing markets are far removed from the nation's capital cities.

In August, 2017, Port Augusta was named one of the suburbs with the biggest growth in median house price in the previous 12 months.

With an increase of 21.6 per cent, the city was in the top three growth areas in South Australia.