Home values are holding strong in regional South Australia while they tumble across Adelaide.
Home values in regional South Australia are holding strong despite those across Adelaide sinking for a fifth month in a row.
Latest realestate.com.au data shows the median property price – which includes houses and units – in all three of the state’s major regions recorded greater value growth over the past year than those in Adelaide.
They climbed most in the Barossa-Yorke-Mid North region, with the median up 12.3 per cent over the past year to take it to $540,000.
The South Australia-Outback region followed, rising 11.6 per cent to $395,000, then South Australian-South East, up 8.9 per cent to $587,000.
All three of SA’s regional areas outperformed those in Adelaide, the data shows.
Unsurprisingly Adelaide’s North recorded the highest growth of the capital’s four major regions, increasing 4 per cent to $793,000, followed by the Central and Hills area, up 3.4 to $1.105m
Ray White SA chief executive Matt Lindblom said prices in regional areas were growing for several reasons, with affordability a major factor.
Affordability aside, he said many people wanted to live in the Barossa-Yorke-Mid North.
“A big part of it is people want to live in the Barossa, it’s a beautiful part of the world,” Mr Lindblom said.
“Because of the northern expressway, it’s incredibly close to Adelaide.”
Significant development in the region, both commercially and residentially, were also contributing, he said.
Ray White SA chief executive Matt Lindblom.
“There is a large number of people who are letting their grapes just die on the vine and then they’re either pulling them up or doing something else with it,” he said.
The pristine beaches on the Yorke Peninsula also continued to attract people who were able to work remotely, Mr Lindblom said.
Meanwhile, he said global miner BHP and its $25bn expansion plan, coupled with cheap homes, was attracting people to the outback region.
The data shows regional SA home values remained unchanged in October but they were up 10.2 per cent on the same time last year to a median of $531,000.
Meanwhile, Adelaide home values were down 0.6 per cent – the largest monthly fall in the country and the fifth consecutive month of decline – but they were up 3.1 per cent for the year, taking the median to $907,000.
Senior economist at realestate.com.au Eleanor Creagh.
Senior economist at realestate.com.au Eleanor Creagh said the data painted a similar picture right across the country.
“Regional markets continue to outperform the capitals, while units have held up better than houses as affordability increasingly shapes demand,” she said.
“Further price declines are likely as higher borrowing costs, weaker confidence and the cumulative impact of previous rate increases continue to weigh on demand, particularly where affordability has deteriorated most.”
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