The confidence level in South Australia's property market is improving the fastest among states, according to the latest poll from ANZ and the Property Council.
South Australia's confidence level currently sits above the national average after it recorded the biggest quarterly increase.
The survey showed that seven in 10 property market professionals are optimistic about the future impacts of the COVID-19 outbreak in the state. They expect things to improve over the next three months.
Daniel Gannon, executive director for South Australia at the Property Council, said it is going to take some time for confidence to return to pre-COVID-19 levels. Thus, caution remains despite the optimism.
"However, it is vital for all levels of government to continue to work with the sector to ensure that landlords and tenants alike survive this hibernation period — rather than picking favourites," he said.
According to a CoreLogic report, South Australia's capital city, Adelaide, reported a slight decline in house prices in June, down by 0.2%.
Despite this, Adelaide, along with Perth, remains the strongest rental market amongst capital cities.
"These cities have also generally seen lower levels of investor participation and less' investment grade' construction over recent years which has kept rental supply reasonably tight," the report said.
A separate report from Domain showed that rents in Adelaide remained stable over the June quarter at $395 for houses and $320 for units. The South Australian capital remained the second most affordable city to rent a house. However, the city’s relative affordability for units is declining, as rents in the segment have continuously increased since 2011.
Adelaide has one of the stronger rental markets of all major cities. In fact, it has the second lowest vacancy rate, which has declined, and steady asking rents.
Nicola Powell, senior research analyst at Domain, said Adelaide offers greater value for money compared to other capital cities.
“As we resurface from the coronavirus lockdown, it could become a drawcard destination for those seeking affordability,” she said.
