South Australia is increasingly becoming a popular destination for interstate buyers, as reflected in the latest data from the Australian Bureau of Statistics (ABS) and the Real Estate Institute of South Australia (REISA).
Over the first quarter of the year, the state hit its highest interstate migration on record at 650 people.
During the same period, the state reported a robust jump in the number of interstate property buyers.
REISA CEO Barry Money said the state welcomed even more interstate buyers during the June quarter.
The segment has grown by 11% compared to the previous quarter and almost tripled from the same quarter last year.
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In fact, the state recorded whopping gains in buyers from Victoria (244.8%) and New South Wales/ACT (236.1%).
There was also a substantial increase of buyers from Northern Territory and Tasmania but gains from these two came from relatively smaller bases.
"A solid proportion of these buyers would be investors, attracted by the great value and return from property here but we believe the more significant driver is the state’s continued inward migratory flow," Mr Money said.
These recent gains have boosted the share of interstate buyers in the state's residential property sales, from 8.25% in 2020 to 12.8% in the second quarter of 2021.
"Our figures represent returns from our member agents only and do not include all SA property transactions,” Mr Money said.
“But our data certainly demonstrates the attraction of property in SA – and certainly reinforces the narrative that South Australia is a destination of choice.”
Houses in South Australia had a median price of $470,000 during the quarter, representing a 4.4% quarterly and 9.8% annual increases.
Metro Adelaide registered its highest median price over the same period, up 13.2% annually to $540,000.
"Booming demand in the housing market with significant limitations in supply will place a continuing burden on first home buyers as well as investors who are keen to add South Australian property to their rental portfolio," Mr Money said.
