South Australia's capital growth swells over a decade

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The South Australian property market has posted consistent capital growth over the past 10 years, according to the recent SA Property Landscape report by BDO and Land Services SA.

The study found that the property types that experienced the strongest growth over the decade to the 2018 financial year were residential properties and commercial offices. These two businesses both peaked at 8.2% growth in 2010-2011 and rose by 5.9% and 4%, respectively, last financial year.

Brenton Pike of Land Services SA, one of the report’s authors, said that SA is a very stable marketplace compared to other states and territories across the nation.

“It’s a pretty trusted and stable place to invest because historically we don’t have the volatility of some of the Eastern states. If you compare this report to some of the other indices available from a national perspective, South Australia is fairing very well in maintaining capital value compared to other jurisdictions,” he told InDaily.

On average, 35,000 property transactions are recorded each year in the state. This was driven by robust rates of construction, with 25% of housing stock built since 2010.

“What we are seeing is there has been subdivision activity driving the average (of new builds) up. It does stem back to which areas we are looking at… there are certain areas when the age of the property is a lot higher,” Matthew Laming, BDO business services partner, told InDaily.

The report also revealed that SA’s average holding period for residential property is 12.3 years.

“The rhetoric we’ve always heard in the industry is that properties turn over every seven or eight years. That holding (of property) definitely does provide stability,” Laming told InDaily.

 

Top Suburbs : kawana , tiwi , west rockhampton , wentworthville , greenwood

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