South Australia’s Spring property market is blooming with auction clearance rates this month at their highest level in 19 months.
Data released by the Real Estate Institute of SA shows auction clearance rates last week (October 13) hit 78% – compared with 53% at the same time last year – and the strongest performance since just before the March 2018 state election.
It comes as Toop&Toop Property Investment and Finance CEO, Suzannah Toop, reports a highly competitive local rental market, with more than 500 tenants applying for their listed properties in the past three months alone.
“This is up 40% from the previous quarter so those tenants out there, it has been quite difficult to secure a property… there’s been a real spike in inquiries for people relocating from interstate and overseas and looking for properties,” Ms Toop told FiveAA breakfast radio.
“We had 13 properties over the last quarter in the CBD open and available for renters and had over 180 tenants through those properties and applying… so very tight at the moment. We expect that to continue on the rental front as we head throughout the rest of the year.”
Treasurer Rob Lucas welcomed the REISA data which mirrors recent independent analysis by national valuer Herron Todd White, showing Adelaide’s residential property market is a rising star and outperforming other mainland capitals – including Sydney, Melbourne and Brisbane – in terms of stability.
“Once again, we have further evidence of the strength of Adelaide’s residential property market, which is clearly attracting high levels of buyer confidence and strong sales activity, with auction clearance rates not seen for nearly two years,” Mr Lucas said.
“Contrary to the alarmist claims of the Property Council and its supporters who are trying to talk down the state’s economy, independent analysis shows a buyoant market with healthy demand for rental properties.
“Claims that the Government’s land tax reforms had destroyed investor confidence and were already forcing many investors to sell properties are clearly wrong.
“The Government’s proposed land tax reforms, which reduces the top land tax rate from a national high 3.7% to just 2.4%, will also further drive our competitiveness and investment attraction, which boosting business and consumer confidence.”
National real estate company Domain Group also reports Adelaide’s residential investment market remains very healthy, with house and unit rents growing 2.7% and 3.3% respectively, over the year to September.
By comparison, rents in Sydney recorded their biggest annual drop in 15 years (down 4.5% for houses, and down 4.6% for units) over the same period.