The property market in South Australia continues to perform well, with significant quarterly capital growth recorded in Adelaide and across country markets. With solid yields and strong capital growth, investor interest is high and the market is booming
Property is performing well across South Australia, with values increasing by 4.36% in metropolitan Adelaide and 4.57% in regional areas in the three months to May 2007, reports Residex.
Mark Sanderson, president of the Real Estate Institute of SA (REISA), says the state’s property market is "booming" across the board.
"It’s excellent – it’s actually booming. There’s huge interest in property in Adelaide and in the regions too," Sanderson says.
"A couple of months of ago, we were saying this is as good as it was in 2003, which was our boom year. Now, it appears to be even better than it was then."
Sanderson says the auction clearances rates have recently been up around 86%, and rental vacancy rates, while slightly higher than they were, are still low.
“Rental vacancy rates have crept up, but that’s typical for this time of year,” Sanderson says. “It’s still under 2%, mind you, but at its lowest it was 0.5%.”
With a median rental return of more than 4.5% in metropolitan and regional SA, Sanderson says investor demand is still strong in the southern state, with a lot of interest coming from Western Australia.
Sanderson predicts that the rental market will significantly tighten again towards the end of the year as university students begin to enrol for the 2008 school year.
"We’ll start to see the student influx into Adelaide from December, and that will continue through the summer months," Sanderson says. "The word is that there’ll be an increase in the number of foreign students next year, which will make a very big difference in the rental market."
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