realestatebusiness logo
Subscribe to our newsletter SIGN UP

State of Markets - SA May 2012

April 30, 2012 Reporter 0 comments

Essential information, plus expert insight on what is shaping the national property market...


Fast Figures

  • $385,000: Median house price for South Australia metro houses (RP Data)
  • 1,612,700: Projected Adelaide population for 2051 (ABS)
  • 39.2: Median age for South Australia (ABS)

SA residential building set to decline

Residential building is set to fall across South Australia due to a lack of significant market pressure, according to forecaster BIS Shrapnel.

The latest Building Industry Prospects report claimed building activity is expected to fall by a further 19 per cent by the end of the 2011/2012 financial year. Private houses and private other dwellings will both see significant declines, the report stated, at 13 per cent and 14 per cent respectively.

“2012/2013 is expected to provide some respite to residential building activity as a few years of underbuilding will have mostly eroded the oversupply of dwellings,” the report said.

In 2012/2013, pressure should have returned to the residential market to encourage a slight upturn in demand. Private houses will see the most growth in 2012/2013, at 5 per cent.

Land tax hindering stock increases

Additions to South Australia’s housing stock are being limited by the nation’s highest land taxes, according to a new report.

Median lot prices in metropolitan areas rose from $90,513 in 2002/2003 to $182,613 in 2010/2011, according to the Urban Development Institute of Australia (UDIA) report, due to insufficient levels of land supply.

UDIA president Julie Katz said releasing land to the market was of significant importance in overcoming supply issues.

“The continued increase in SA’s population, albeit slower than most other states, will result in additional demand for residential land,” Ms Katz said.

Provision of adequate amounts of land should be achieved under the rezoning in the 30-Year Plan for greater Adelaide, she said.

State of Markets - SA May 2012
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 50 women 2018

The 2018 REB Top 50 Women in Real Estate ranking is out now, see the full 2018 ranking here!

featured podcast

featured podcast
Top agent on how to balance patience with performance in a fast-moving and competitive industry

After two decades in real estate, Nikki Janover has cracked the REB Top 50 Women ranking for the first time, coming in this year at number 2...

View all podcasts

What is the most important attribute to have in real estate sales?

Old fashioned grunt
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.