Prices in Rural SA record strong growth

Regional South Australia is proving a lucrative investment with house prices soaring in many areas over the December quarter, according to the Real Estate Institute of SA (REISA).
 
REISA President Robin Turner said the median house price for SA had broken through the $300,000 mark for the first time in December and prices in regional areas had played a big part.

“House prices in SA are now at a median of $320,000, which is a jump of 8.8% over the past three months and 18.5% over the past year,” he said.
 
“And the median house price in Rural SA increased by 12.5% over the past three months and 17.9% over the past year to $240,000.”
 
Mr Turner said the mining boom was having an unprecedented impact on property prices in some regional towns, with Whyalla and Port Augusta again leading the way.
 
“Whyalla’s median house price has jumped 45.3% over the past 12 months to $288,500 while Port Augusta’s rose by 29.6% to $227,500.”
 
“At the opposite end of the State, Mount Gambier also had a favourable year with the median increasing by 13.9% to $221,000.”
 
John Oliver, General Manager, Retail Banking at Adelaide Bank, said that if the resources boom continues then the Australian economy is likely to remain in good shape and as a result South Australia’s housing market should continue to grow.
 
“The enormous amount of new housing construction occurring in the north of Adelaide is proof of the continuing housing boom in SA,” Mr Oliver said.
 
“In the longer term, if our exports to China continue to grow, South Australia can expect to see further investment and growth in the resources and mining sector. This will further boost growth in the housing industry,” Mr Oliver said.
 
Mr Turner said that despite strong investment in these regions, it was important to remember that some parts of South Australia were still affected by the drought.
 
“SA’s economy is in a precarious position at the moment with some areas soaring and others struggling, so it is important that we share the wealth and encourage investment in other regions.”
 
“Even in the booming towns, it is important that services are developed and infrastructure built to support the rising populations and ensure the growth is sustainable for many years to come.”

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