Lack of supply sees regional property market buck the trend as prices continue to climb despite rising interest rates

Property prices in regional South Australia continue to explode despite national prices dropping for the tenth consecutive month. See which SA regions have bucked the trend.

Property prices in regional South Australia continue to buck the trend with a lack of supply seeing housing sell like hot cakes.

South Australia’s property market has continued to see an increase as home prices nationally dropped for the tenth consecutive month.

Data from PropTrack has revealed the South Australian towns that have defied the market downturn.

Among SA’s star performers was Waikerie, where house values climbed 29 per cent to a median of $298,000, Crystal Brook where values went up by 28 per cent to a median of $287,000 and Kingscote where values went up 27 per cent to a median of $383,000.

The South-East showed strong growth, particularly among unit prices, which have soared in the last 12 months.

Eleanor Creagh, senior economist, PropTrack. Pic: supplied.

Since February 2022, median house prices in Mount Gambier and Naracoorte grew by 12 per cent, Robe by 15 per cent, and Millicent by six per cent.

Keith was the strongest performing South-East market with median prices soaring by 24 per cent in 12 months.

Mount Gambier real estate agent Bianca Taylor from the Property Co said houses with minimal improvements that had been held for a short time were seeing massive returns.

“In December of 2019, the current owners of a particular property purchased it for $335,000 — it just sold at the start of 2023 for $531,000,” she said.

“In January 2021 some vendors of mine purchased a property for $187,000 — I’ve now just sold it in November of 2022 for $320,000.”

The South-East is still considered reasonably affordable, despite fears locals could get priced out, Ms Taylor said.

Mount Gambier’s highest performing property assets are units, with median values increasing by 29 per cent since February 2022 — the third highest nationally.

South Australia’s property market has continued to see an increase as home prices nationally dropped for the tenth consecutive month. Picture: Realestate.com

Key 2 Sale Director and real estate agent Al Lamond said the housing crisis had fuelled the fire in the South-East property market.

Mr Lamond said there was a mix of individuals buying out single units as well as landlords buying out whole unit blocks as an investment.

Retirees looking to downsize had also contributed to unit values climbing, Mr Lamond said.

“I think the secrets out about Mount Gambier — definitely from pre-Covid times to now,” he said.

Mr Lamond said after being seen as a “safe haven” from Covid, buyers had flocked to Mount Gambier for its “lifestyle”.

“It is a good place to bring up kids — we have a very diverse employment area. We don’t rely on any one industry in Mount Gambier, which is great,” he said.

PropTrack Senior Economist Eleanor Creagh said the lack of supply had provided a shield for prices despite rising interest rates.

“The number of properties listed for sale is still well below pre-pandemic levels in the South Australia, South-East region,” Ms Creagh said.