South Australia
Outlook
The South Australian property market has been quite buoyant in the last six months, rising steadily by around 7 per cent, despite a drop in sales volume of around 5 per cent on the previous half year period. Rental vacancy rates have tightened to between 1 and 1.5 per cent, putting pressure on weekly rents. The South Australian property market is expected to continue its steady growth over the next six months and if the Reserve Bank hands out, hopefully, no more than two 0.25 per cent rate rises for the remainder of 2010, it is anticipated a consistent volume of sales will result, together with a rise in values of between 3 per cent and 5 per cent across the state. As predicted in our previous Property Outlook, house prices in South Australia increased by an average of between 5-10 per cent, and growth is still anticipated of up to 5 per cent on average for the third and fourth quarters of this year. According to our survey, around one third of respondents expect investor activity to increase, with the remaining expecting no change at all. Of those anticipating an increase, all predict increases of between 5-10 per cent. Interest rates are expected to continue to increase by all South Australian respondents, with predicted increases varying between 0.25 per cent up to 1 per cent. Sales volumes for the next 12 months are anticipated to increase by 60 per cent of respondents, reversing the trend over the last 12 months where almost 66 per cent of respondents and experienced a decline in sales.
First National Real Estate 2010 Property Outlook Mid Year Update 25