The real estate industry on the southern Fleurieu has seen a boom over summer, with agents reporting all-time high sales and interest from investors.
Soaring property prices in Adelaide and the eastern states have pushed a surge in investment in Fleurieu properties, with rental and holiday sectors also strong.
Harcourts South Coast had record sales over the summer, according to principal Mark Forde.
Mr Forde said it was driven by low interest rates and strong rental demand, with many interstate buyers.
“The rest of Australia and the world are identifying the affordability of our market, great values paired with our excellent lifestyle, clean and safe, and within an hour and 15 minutes of the CBD,” Mr Forde said.
“We’d be 20 per cent up on last year. We had an unbelievable January, it was just off the charts in terms of number of sales.
“It’s taken a long time for the property market to recover from the Global Financial Crisis (GFC). That, with unemployment in the region, handicapped our market given that a lot of our market is absentee owners.
“2007 was one of the best years in the region before the GFC, after which the market dipped from 2007 to 2014.”
Mr Forde said the industry on the south coast saw a slow recovery since 2007. At times many south coast properties struggled to sell, even sitting on the market for “enormous” amounts of time.
“It was a lack of demand because the market was just over-priced. 2012 was one of the hardest years I’ve seen in the real estate market and now we’re getting back to some constant growth.”
South Coast Realty director and auctioneer Rob Heaslip said the 2016/17 summer was one of the best periods he had seen.
“We had a definite spike in activity,” Mr Heaslip said.
“General comments from interstate buyers were that they could buy two-for-one in SA compared to NSW and Victoria.”
There is a high demand for homes in the $300,000 to $400,000 price range on the south coast.
“I believe that our coastal homes are still good value compared to other coastal areas of the state and well down compared with the eastern seaboard states.”
For 2017 so far, Domain statistics show there were 166 homes sold in Encounter Bay, 126 in Victor, 47 in Port Elliot, 43 in Middleton and 67 in Goolwa.
Property investors and buyers from Adelaide, interstate and overseas are starting to take notice of the Fleurieu Peninsula.
The median price of a three-bedroom house in south coast towns like Victor Harbor and Goolwa is in the low $300,000s.
With the median house price in Sydney at $995,804, coastal towns on the Fleurieu are an attractive option for a sea change more than ever. The south coast real estate industry saw a spike over summer.
Time will tell whether this week’s federal budget will impact the local industry. Some changes mean retirees who sell their family home can now add up to $300,000 into their super, and there is a ‘ghost tax’ of up to $5000 for foreign buyers who leave homes empty.