A resilient South Australian property market could be tested, but encouraging signs emerge.
Stability has long been the characteristic used to best describe the South Australian property market. Of course, the test of this stability is still in its infancy, with the brunt of the COVID-19 pandemic yet to be fully captured.
The release of the Valuer-General’s median house price data for the 2020 March quarter, has revealed some encouraging indicators for the South Australian property market moving through the pandemic. REISA President, Mr Brett Roenfeldt, has described encouraging growth when comparing the figures with the same period last year and the past quarter.
“It is great news that the median price recorded this quarter is still the second highest median price ever. While this quarter only partially captured some of the effects of COVID-19, it is nevertheless, a terrific result. The sustained median price is a clear indicator of the underlying strength and resilience of the Adelaide real estate market. It is very clear that purchasers are still willing to enter the real estate market and pay a premium price for properties that are affordable, realistically priced and which offer great opportunities for life change experiences, investment and development”.
Mr Roenfeldt also commented on the ability of the SA real estate industry to survive through such a trying economic period.
“I am pleased by these results and encouraged by the real estate profession’s determination to weather this crisis through. I am confident that we will survive this crisis and that the real estate market will be stronger than ever”.
Land Services SA Chief Executive, Brenton Pike, commented on the property market stability in SA, when compared with the Eastern states.
“We’re early in our understanding of the impact of COVID-19 on our property market in SA, but as a rule we generally do not see the large fluctuations that are evident on the Eastern seaboard.”
Whilst it is promising that SA could be amongst the best placed markets to endure the pandemic, there has been an inevitable drop in properties listed for sale.
‘We have noticed key indicators of future listings are dropping and that is to be expected’ Mr Pike said.
Even with less properties on the market, vendors can be encouraged that sales figures are remaining steady for now.
“For those vendors who do need to sell in this environment, they’re still achieving good prices but the amount of listings out there is dramatically less.
If (buyers) want a good quality property then they’ve got to pay a premium price for it – that continues to hold up the prices.” REISA’s Mr Roenfeldt said.
At Bernie Lewis Home Loans we recorded a slight decrease in new lending enquiries since social distancing restrictions were enforced in March, however an encouraging bounce back has occurred with new lending enquiries almost doubling into May. This gives us some cause for optimism to emerge from this pandemic with a strong property market intact.
Should you wish to talk to one of lending experts, on what this outlook could mean for you personally, please give us a call on 8300 8300.
SA MARKET UPDATE – 2020 MARCH QUARTER 6 May 2020