The South East housing market continues to shine while prices slow across Australia

While property prices plunge in major cities, a South Australian regional centre has continued to shine, doubling the national average in growth. See which towns are booming.

As property prices plunge nationally, the regional South Australian market of the South East has continued to boom and show strong growth.

The South East was recently ranked the eighth strongest region in the country, with property experts optimistic about the steady growth.

During the height of the pandemic, regional Australia saw a surge in property prices as city dwellers made a tree change.

The South East recorded a 22 per cent profit over the last 12 months, more than double the national average of nine per cent.

A Mount Gambier home listed for $269,000 – $289,000, which recently went under offer. Picture: Realestate.com.au

PropTrack senior economist Paul Ryan said outside of metro Adelaide, the South East was the strongest performing market in South Australia.

Mr Ryan said it was encouraging to see many who made the move since 2020 had not moved on or sold up.

There was speculation recent selling activity had been prompted by tree-changers moving back to the city. However, Mr Ryan said the data did not reflect this.

“Part of the reasons why profits are so strong — is that the sellers have held their properties for an unusually long amount of time,” he said.

“Majority of people that are selling bought well before the pandemic.”

Mount Gambier recorded the highest median South East profit of $126,112, with average sellers letting go of their homes after roughly five and half years.

Millicent came in behind with an average profit of $109,000 followed by Naracoorte, and Bordertown with average figures of $75,500 and $66,500.

Mr Ryan said pricing increases were now steady, compared to the massive price surge seen during the peak of the pandemic.

“The rate of growth that we saw over the past year or two really was unsustainable, it couldn’t continue forever,” he said.

“Without that rapid price growth — I think people can be a little more selective.”

Complete Real Estate property consultant Jessie Little said the market was still very affordable to Limestone Coast locals.

“We are still experiencing great interest from not only local buyers but investors and interstate buyers looking to relocate,” she said.

“We have actually experienced a lot of local and first home buyers over the last 12-18 months. With the new Home Guarantee Scheme we imagine we will begin to see a rise in First Home buyers throughout the region.”