First published 30 Oct 2026, 8:06am
One of South Australia’s safe havens and market entry points for first homebuyers is rapidly becoming unattainable, new research shows, prompting calls for a faster rollout of more affordable housing.
Oliver Hume Property Group research shows up to 70 per cent of first homebuyers in Mount Barker have been priced out of house and land packages in the suburb as interest rates continue to rise and costs increase.
According to the property group, May and September’s interest rate hikes alone by the Reserve Bank of Australia wiped $20,000 off of first homebuyers’ borrowing capacity.
Artist renders of the Larkview community at Mount Barker. Supplied
Oliver Hume Property Group’s Chief Economist Matthew Bell said the data demonstrated a widening gap between buyers’ ability to service a mortgage and house and land supply.
According to the research, most first buyers within 15km of Mount Barker sits below $700,000, while almost half the available stocks sits between $800,000 and $1.2m.
In fact, the $600,000 to $700,000 properties most first homebuyers can afford made up just 15 per cent of the available house and land options.
Oliver Hume Property Group’s Chief Economist Matthew Bell said Mount Barker needed to increase its affordable options as buyer’s borrowing capacity tightened.
“Rising prices and higher interest rates have materially reduced affordability for first homebuyers in Mount Barker. Where greenfield markets have traditionally provided a more affordable pathway to home ownership, Mount Barker provides limited opportunities for first homebuyers,” Mr Bell said.
Oliver Hume Property Group’s Chief Economist Matthew Bell. Pic: Supplied
“There is a strong need for developers in the area to increase the supply of townhouse and semi-detached product available under $700,000 to meet first homebuyer demand.”
To meet that gap in the market, developer Jinding will bring a series of 20 townhouses online, with prices starting at $605,000, which discounts to $590,000 for first home buyers using the state government’s $15,000 grant.
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The developer has recently started construction work in the town’s new Larkview community.
Jinding national development director of communities Chris Ravat said of the more than 100 purchasers in the development, about 30 per cent were first homebuyers, demonstrating a solid response to its competitive pricing.
“We recognise that Mount Barker is a tough market for first homebuyers – not only do you have reduced borrowing capacity due to interest rate rises but prices in the established housing market are out of reach to many as well,” Mr Ravat said.
Jinding national development director of communities Chris Ravat. Supplied
“From the outset we’ve sought to cater for the first homebuyer market, with our median price of $366,000 at launch sitting well below that of other competitors.
“The first homebuyer market has been the biggest segment of purchasers at Larkview and we hope to continue that through this release of townhomes targeted at young purchasers.”
The homes will be delivered in partnership with Australian builder Simonds Homes, with two, three and four bedroom townhomes offering between 96 and 187 sqm of living space.
When complete, the development will deliver more than 350 lots over its 22ha site.
Artist renders of the Larkview community at Mount Barker. Supplied
“Larkview’s townhomes offer a connected, low maintenance lifestyle surrounded by nature and open space. Architecturally designed, they blend functional living with contemporary style and modern comfort,” Mr Ravat said.
When complete, Larkview will deliver more than 350 lots across the 22ha site.
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