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Adelaide luring interstate buyers

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INTERSTATE home buyers are showing up for the South Australian residential market, as interstate purchases in the state increased by 313%.

According to REISA, the number of buyers from outside South Australia is showing continuous growth, when compared to data from the same months in 2020.

“With recent ABS figures revealing that SA experienced three consecutive quarters of positive net migration to close out 2020, we expected the number of interstate purchasers to increase too. Our figures show they did,” said Barry Money, CEO of REISA.

Buyers whose primary address is in New South Wales reported the greatest increase, at 579%, followed by those in Victoria with a 336% increase.

While all other states and territories also saw increases, they were up from far less significant bases in 2020.

“The figures represent returns from our member agents only and thus do not include all transactions. But comparing apples with apples, we see very positive growth,” said Money.

South Australian residential median prices for the first quarter of the year recently set an all-time record, increasing by 4.56% on the same time in 2020, while metropolitan Adelaide’s new median price of $518,000 was up 8.14%.

While like the majority of capital cities across the country over May, Adelaide saw a monthly fall of listings of 7.1%, reflecting a yearly fall of 18.4%, due to strong market conditions shrinking supply.

With prices rising and supply tightening, National Housing Finance and Investment Corporation and the South Australian government have agreed to deliver more than 600 new social and affordable homes for the state.

“We believe that a good number of these buyers are investors, attracted by the excellent returns that are available here. However, we consider the majority of purchases are a result of the net positive migration, with professionals and returning South Australians attracted not only by the value, but by the lifestyle and confidence in the positive change of direction in SA’s economic thrust,” concluded Money.

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