Price growth reaches 6-year high in sleeper state

Despite the strong relative growth, residential sales transactions declined in South Australia by 2.2 per cent, with the City of Burnside area experiencing the largest fall.

Rural properties in the state saw even better growth, experiencing a 10 year-year of 5 per cent, but vacant land saw its growth rate decline by 3.8 per cent to 0.6 of a percentage point, which made it the worst capital growth rate of any land use in 2018.

The average holding period, according to Land Services SA, is at 12.3 years, above what the report referred to as the ‘common industry perception’ of an average of seven to eight years.

New supply

Over 10,500 new dwellings were constructed in 2017, a seven-year high, and is up 8 per cent from the year before – a result of the increase in construction in metropolitan Adelaide for the fourth year in a row.

Over 10 per cent of dwellings across the state have been constructed since 2010, with the Mount Baker District Council seeing 21 per cent of its stock built in the same time period.

Subdivisions are also proving to be popular in Metropolitan Adelaide, with 14 per cent of new supply created through subdivisions, with Mount Barker Playford and Gawler particularly jumping in the trend, with 36 per cent, 26.6 per cent and 26.5 per cent of stock created through the act.

Mortgaged properties

Across the state, the report also found the big four banks make up 64.7 per cent market share of all residential mortgages.

Property held by a mortgage saw an increase over the last 10 years, rising to 64.2 per cent in 2018, up from 58 per cent in 2008.

The last year however saw a rise of only 0.2 of a percentage point, indicative of the tight lending environment.

The area of the City of Playford saw the highest proportion of mortgaged properties in the state at 76.3 per cent, while the City of Campbelltown was the lowest metropolitan area for mortgage proportion, sitting at 58.7 per cent.

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