Investor activity in the state has been on a broad decline this year, said Jarrod Harper, local expert at HTW.
"The level of uncertainty surrounding COVID-19 has been a major deterrent to investors entering the market," he said.
Harper believes the South Australian market could be entering the initial stages of a downward cycle, especially if the latest market data are considered.
In fact, figures from CoreLogic show that while values in the state capital, Adelaide, remained higher than last year, they are already declining on a month-on-month basis.
"Historically, the South Australian market has lagged behind the east coast markets, which have shown signs of decline since late March. At this stage the decline has only been slight and will be monitored closely in the short to medium term," Harper said.
This, however, would mean that the South Australian market would remain as a more affordable option than the larger metropolitan markets around Australia.
"Investors should have confidence in the South Australian market in the medium to long term, being cushioned from the COVID-19 fallout," Harper said.
|
Area |
Property Type |
State |
Median Price |
Quarterly Growth |
12 month Growth |
Weekly Median Advertised Rent |
Gross Rental Yield |
|
Metro |
Houses |
SA |
$470,000 |
1.1% |
2.2% |
$380 |
4.2% |
|
Metro |
Units |
SA |
$342,000 |
0.1% |
-0.6% |
$325 |
5.0% |
|
Country |
Houses |
SA |
$270,000 |
0.0% |
1.9% |
$270 |
5.1% |
|
Country |
Units |
SA |
$220,000 |
1.2% |
3.7% |
$200 |
4.9% |
Source: CoreLogic, August 2020
