South Australia has become a hotspot for interstate buyers, according to figures from the Australian Bureau of Statistics (ABS) and the Real Estate Institute of South Australia (REISA).
Figures from ABS indicate that the state has reported three consecutive quarters of positive net migration.
Barry Money, CEO of REISA, said the growth in net migration in the state coincides with the gains in the number of sales from interstate buyers.
"The number of residents domiciled elsewhere in Australia buying residential properties here in South Australia increased by a whopping 313% in total," he said.
South Australia registered the biggest gains in interstate buyers from New South Wales (579%) and Victoria (336%). There was also a considerable increase in interstate buyers from ACT and Northern Territory.
"We believe that a good number of these buyers are investors, attracted by the excellent returns that are available here," Money said. "We consider the majority of purchases are a result of the net positive migration, with professionals and returning South Australians attracted not only by the value, but by the lifestyle and confidence in the positive change of direction in the state’s economic thrust."
This surge in demand from interstate buyers could be one of the contributors to the sustained growth in the dwelling values in the state and its capital. In fact, latest figures from CoreLogic show that the median dwelling value in Adelaide increased by 1.9% in May to $500,881.
A separate report from SQM Research found that the asking price for houses in Adelaide increased by 2.1% in May to $547,600. This came with the 7.1% decline in total property listings in the city.
“Property listings fell in May due to strong market conditions. We have also seen a big fall in old listings during the month, indicating that old stock is getting moved everywhere,” said Louis Christopher, managing director of SQM Research.