New data from the Real Estate Institute of South Australia (REISA) has revealed continued net interstate immigration gains throughout the state.
REISA Chief Executive Officer Barry Money announced the March quarter saw the highest interstate migration rate in the past four decades.
“The ABS numbers for the March quarter reveal that South Australia gained 650 people – the largest number in the 40 years that the Bureau has measured that statistic,” Mr Money said.
“Over the same period, REISA data showed that interstate buyers of SA residential property jumped sharply too.”
Mr Money added the continued rise in interstate buyers has had significant benefit for the South Australian economy.
“The even better news for the SA economy is that our data indicates that interstate buyers in SA residential property increased again in the June 2021 quarter by around 11 per cent. When compared with the June quarter last year, the number has more than trebled,” he said.
“In raw numbers, buyers from Victoria and NSW/ACT again led the charge, though larger percentage increases came from smaller bases in the NT and Tasmania.
“While there were reduced numbers from Queensland and WA buying in SA, the numbers are still higher than the average of the past nine quarters.”
REISA data also indicated interstate buyers accounted for a greater percentage of all residential property sales across South Australia.
“Through 2019 and 2020, these sales represented between 6.5 and 8.25 per cent of all buyers. In the March quarter this year, that percentage jumped to 11.37 and in the June quarter, to 12.8 per cent,” Mr Money said,
“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 also noted that many interstate buyers were buying property sight unseen, lured by the strengthening economy and lifestyle.
“Since we started these analyses as early indicators of the success of South Australia, REISA has stated that the appeal of the South Australian lifestyle, safety and turnaround in the economy have been the key driver,” he said.
“Our figures represent returns from our member agents only and do not include all SA property transactions. But our data certainly demonstrates the attraction of property in SA and certainly reinforces the narrative that South Australia is a destination of choice.”
Top regional South Australian investment suburbs
A recent report from realestate.com.a provided data of the 15 best regional suburbs for investment in South Australia, based on demand, historical capital growth and rental yield.
Houses in Mount Gambier were highlighted as the top investment opportunity, according to Adelaide Now. There have been 629 sales in 2021 so far, a huge leap from the 270 sales the suburb saw a decade ago.
Units in Mount Gambier were also listed as a good investment opportunity, the only regional area to have an apartment recommendation.
The median price of units in the southeastern regional city increased 9.9 per cent over the past 10 years, and 25 per cent over the past 20 years to $200,000
Murray Bridge and Port Lincoln came second and third respectively, with the recommendation to invest in a house.
Coming in fourth was Naracoorte, in the state’s southeast.
It showed the most significant 20-year value growth, with median prices in the suburb increasing by 620.6 per cent over the past 20 years to $245,000. In 2001, Naracoorte’s median sale price – from 135 sales – was $34,000.
