Promising signs for region's real estate

Promising signs for region's real estate

The real estate market across South Australia is running hot, but that hasn't meant an increase in local house prices quite yet.

That is according to the Real Estate Institute of South Australia's CEO Barry Money, who visited Port Augusta last week as part of their Regional Road Show, meeting with local members and sharing some knowledge.

Mr Money said there were some promising signs for the region, but as of yet not an increase in sale prices.

"The market has been very hot in South Australia, in fact is has been the hottest it has been in a long time," he said.

"That is for both metro and regional areas."

"When we look at the median house price in Port Augusta it is down 16 per cent year on year, quarter to 2020 versus quarter to 2021."

"Demand is translating into volume of sales, in Port Augusta an increase of 105% in 2021 over 2020."

"For the region I think it is safe to say across the board, except with perhaps the exclusion of Roxby Downs, there is a greater inquiry from interstate investors."

"Port Augusta agents are quoting 25 to 35 per cent of their inquiries coming from interstate."

"I think that is a positive sign for Port Augusta, and it is consistent in the regions as well."

"Port Augusta is a transition town, and a feeding town to other areas so it is a good investment from the point of view of interstate or metro investors."

Demand is translating into volume of sales, in Port Augusta an increase of 105% in 2021 over 2020.

Barry Money

Mr Money said that low interest rates along with confidence in the South Australian markets was driving the sales.

"That is driving an interest in the property market," he said.

"Discretionary income is high because of a lack of travel, we are not going anywhere, we are not spending our money on overseas travel so that money is being funnelled into investment and home renovations."

"I think this trend will continue as long as those factors remain the same."

But the increase in demand does come with its problems, said Mr Money.

"We noted as we have been travelling around the region that so much more pressure is being put on the private market," he said.

"Certainty in terms of rentals, government housing and community housing is not being refurbished and replaced at the rate of demand."

"Therefore that supply is limited, if that supply comes back on track and gets up to par then we could see an impact on the demand on prices."

As the real estate peak body in the state, Mr Money said the tour was an important way to interact with their members.

"Once every six months we go around to the regions and we work with them and collaborate with our members," Mr Money said.

"We presented on key topics such as the state of the market, innovation, legislation changes that have happened or are coming, and our stance on a number of those items to the agents."