South Australia was a relatively steady market in 2018, but there were some standout performers and popular buying spots for property investors.
Over 2018, South Australia was confirmed to be a “no frills” but reliable property market, according to NAB’s South Australian general manager Gregg Harris.
“While states on the eastern seaboard endured market swings and price correction, South Australia’s residential property market saw subdued yet consistent price growth in 2018,” Mr Harris said to Smart Property Investment.
“Dwelling values grew 1.8 per cent to the year ending 31 October, according to Core Logic’s data.
“First home buyers remained a key player in the South Australian market, perhaps benefitting from the state’s modest average dwelling price of approximately $432,000.”
Mr Harris also provided three stand out suburbs for the South Australian market, which were:
Mr Harris said Prospect’s status as a popular suburb for buyers was due to larger property sizes which provided a city lifestyle.
“A steady flow of new local commercial and residential developments this year – including a cinema, restaurant, and numerous apartment buildings – helped fuel property price growth in the area,” Mr Harris said.
“Median house value in Prospect increased by 7 per cent this year alone, nearly four-times the state average, and 18 per cent over the past five years.”
Norwood was another suburb that was popular in South Australia over 2018, which Mr Harris attributed to being close to the city and a variety of available property types sizes being available.
“Feedback from NAB customers suggests there is not enough properties on the market to meet demand. This is supported by REA Group data which found it’s the state’s most in-demand suburb,” Mr Harris said.
“Many property owners in Norwood are keen not to lose their foothold in the market, with NAB’s Property Insights data finding only 39 properties sold in the suburb in the past six months.
“Interestingly, despite the demand, Norwood didn’t see the notable price growth which was experienced in neighbouring suburbs. Beulah Park, , Kent Town and Rose Park all achieved double-digit property price growth this year.”
According to NAB’s residential property survey, Flinders Park was expected to see above average price growth in 2019, the general manager said.
“RP Data shows median property prices in the suburb grew by approximately 6 per cent in 2018 – more than three times the state average,” he said,
“Flinders Park offers proximity to the beach and the city, while maintaining relative affordability. More than half (53 per cent) of the properties sold in Flinders Park over the past 12 months fetched $600,000 or less, according to NAB’s Property Insights data.
“Buyers didn’t have to travel far west or east to see the average price climb much higher.”