South Australia’s strong housing market stands out

The South Australian government has flagged the strength of the property market after new data was released showing growth in dwelling approvals in the state.

Dwelling approvals in SA for November grew by 10 per cent to 1,226, bucking a trend of decreases across other mainland Australian states, the latest Australian Bureau of Statistics (ABS) data has revealed.

Wednesday’s (11 January) numbers for the festival state rides on the back of it also experiencing an increase in dwelling approvals of 15.2 per cent over the year to November 2022, while all mainland states experienced significant decreases led by Western Australia (-33.8 per cent), Queensland (-25.5 per cent) and Victoria (-17.4 per cent), with dwelling approvals down 15.1 per cent nationally.

As highlighted by the SA state government, the data follows recent statistics from CoreLogic for December, which shows house prices remain steady in Adelaide, only falling 0.4 per cent in December, while larger falls were recorded in other capital cities.

Capital city Adelaide also recorded the highest median house price increase of all the capital cities over the year, at 10.1 per cent, the data illuminated.

State treasurer Stephen Mullighan stated: “These latest figures show South Australia’s housing market remains strong, especially compared to the eastern states, with housing prices remaining at current high levels and demand for new housing up.

“South Australia’s housing market hasn’t experienced the volatility of the eastern states, and that’s good news for property owners.

“While the strength of the property market is positive for those already owning houses, we know we need more supply to help others get into home ownership,” he explained.

Affordable homes hitting the market

Bolstering the state’s current housing strength, more than 250 affordable new homes are due to hit have hit the market by March 2023, which started with the release of 51 properties to be built at a former Housing SA site in Munno Para, as announced earlier this month.

Ten new public homes on this site are anticipated to commence construction during the 2023–24 financial year, the government has outlined.

According to the government, SA builder Fairmont Homes has started preliminary construction on site today, providing a range of affordable two and three-bedroom homes.

Human services minister Nat Cook explained that like all other states, SA faced housing market pressures and responses must include a mix of options.

“Providing safe and affordable housing for our community requires many responses. That’s why we’re investing an extra $177.5 million in public housing, building more affordable homes and expanding low deposit loans through HomeStart,” Minister Cook said.

“These new affordable homes are an opportunity for people who would likely be locked out of buying a home in an extremely competitive housing market.

“Buyers eligible to purchase through the HomeSeeker SA program are exclusively offered these homes to purchase, meaning that they don’t have to compete with investors.

“I would also urge prospective buyers to go to the website and get their pre-approval in place so that when they do find a house they like, they are ready to make an offer,” she explained.

How the scheme works

The Munno Para development is part of the SA government’s commitment to delivering 1,000 affordable homes to “help reduce housing stress” and “relieve some rental market pressure”.

Starting from $235,000 with HomeStart Finance’s Shared Equity loan option, the Munno Para properties were also released to the market on the HomeSeeker SA website.

The government confirmed that by March 2023, more than 250 affordable homes will have been listed on HomeSeeker SA in a number of inner and outer suburbs including Blair Athol, Seacombe Gardens, Edwardstown, Woodville Gardens and Morphettville.

The new homes will be a mix of single and double storeys; mostly two and three-bedroom homes, with larger four-bedroom homes offered in some locations, it stated.

Appointed builder partners Rivergum Homes, Scott Salisbury Constructions (Bradford Homes) and Metricon Homes and Fairmont Homes have been engaged by the government to deliver 1,000 affordable homes, it confirmed.

The homes will be built to cater for first home buyers, single parents, downsizing retirees or families looking to upgrade, it added.

Affordable homes are available exclusively to eligible buyers earning less than $130,000 per year as a couple or family, or $100,000 as a single person, the government highlighted.

[Related: RBA hikes cause decline in building approvals: HIA]