As a top property agent in South Australia company, we have seen firsthand how the local property market has been booming over the last few years. In contrast, other states and territories have experienced a significant slowdown.
In this blog post, we explore the reasons behind the exceptional performance of the South Australian property market and what makes it an attractive destination for property buyers and investors alike.
Economy And Affordability
One of the significant factors behind the growth of the South Australian property market is the state’s strong economy. South Australia is home to several industries, including:
- Defence
- Manufacturing
- Healthcare
- Education
The state has been investing heavily in infrastructure, including the development of new roads, bridges and public transport, which has helped to attract more people to the area.
Another reason why South Australia is experiencing such strong property market growth is that it is still more affordable than other parts of Australia. Property prices in South Australia cities like Adelaide are significantly lower and not over-inflated as in other capital cities such as Sydney and Melbourne, making it an attractive destination for first-time homebuyers, families and investors.
Lifestyle And Culture
The laid-back lifestyle and unique culture of South Australia are major attractions for property buyers. Adelaide, the state capital, is renowned for its stunning beaches, delectable food and wine, and relaxed pace of life. Its thriving arts and culture scene boasts world-class museums, galleries and festivals that showcase local talent and attract visitors from around the world.
The state’s diverse countryside is another major drawcard, with breathtaking natural landscapes that range from pristine beaches to rugged mountain ranges. South Australia is also home to some of the world’s most famous wine regions, including the Barossa Valley and McLaren Vale, which attract wine enthusiasts from all over the globe. The state’s exceptional quality of life, combined with its stunning scenery and cultural offerings, make it an ideal location for those seeking a balanced and fulfilling lifestyle.
Infrastructure And Development
Infrastructure and development play a significant role in the growth of any property market and South Australia has been investing heavily in these areas. The state government has been committed to developing key infrastructure projects, such as the $2.4 billion Adelaide Riverbank Precinct, which includes the redeveloped Adelaide Oval and the new Royal Adelaide Hospital.
In addition, there has been a surge in new property developments in South Australia, particularly in Adelaide’s inner-city suburbs. These developments offer modern, high-quality apartments and townhouses, which are attracting a new generation of homebuyers and investors.
An example of one of these developments is Adelaide’s billion-dollar development called Riverlea Park. It was approved at the beginning of 2022, 15 years after its concept was first developed. It is 37km from Adelaide and is planned to provide:
- Homes to 30,000 people
- Four schools
- 450ha of parkland
- A vast system of lakes (50ha)
- 42km of hiking and walking trails
- New retail centres
It is planned to sensitively integrate with Buckland Park’s agricultural and rural boundaries.
Foreign Investment And Migration
Foreign investment and migration have also played a role in the growth of the South Australian property market. The state has been attracting an increasing number of overseas buyers and migrants, particularly from China and India. These buyers are attracted to the state’s affordable property prices, high standard of living and excellent education and healthcare systems.
In recent years, South Australia has also become an increasingly popular destination for international students, further boosting demand for rental properties in the state. The state is home to several world-class universities, including:
- The University of Adelaide
- Flinders University
- The University of South Australia
The universities have attracted students from around the globe. This has led to a surge in demand for rental properties, particularly in the inner city suburbs.
Foreign investment has also been instrumental in driving growth in the commercial property market in South Australia. In 2020, a Hong Kong-based investment company purchased the Adelaide Central Plaza for $400 million, one of the largest commercial property deals in the state’s history. This transaction is a clear indication of the growing interest of foreign investors in the South Australian property market, particularly in commercial properties.
In addition, the state’s migration policies have also been instrumental in attracting skilled migrants to the state. The South Australian government has introduced several initiatives to attract skilled workers to the state, including the Skilled Nominated visa, which allows migrants with specific skills to apply for permanent residency in South Australia. This has helped to address the state’s skilled labour shortage and boost demand for properties in the state.
Government Incentives
Finally, government incentives have also played a role in the growth of the South Australian property market. The state government has introduced several initiatives to encourage property investment and development, including the Housing Construction Grant and the First Home Owner Grant. These incentives have helped to stimulate the construction industry, create jobs and increase the supply of new homes.
Another government incentive that has contributed to the growth of the South Australian property market is the Land Tax Transition Fund. This program was introduced in 2020 and aims to make land tax fairer for investors and reduce the burden on those with high land tax liabilities. The program allows eligible property investors to claim a reduction in their land tax liabilities for up to five years, providing a significant financial incentive to invest in property in South Australia.
In addition, the South Australian government has also introduced a range of measures to support the state’s economy and create jobs, which have indirectly benefited the property market. These measures include infrastructure projects such as the $354 million Gawler rail electrification and the $885 million Northern Connector project, which have boosted employment and increased demand for housing in the surrounding areas. By creating a more prosperous economy and job market, the government has helped to drive growth in the South Australian property market.
The Word On The Ground
In conclusion, the South Australian property market is performing exceptionally well due to a combination of factors, including a strong economy, affordable property prices, attractive lifestyle and culture, infrastructure and development, foreign investment and migration and government incentives. If you are considering buying or investing in property in South Australia, now is an excellent time to do so.
