Artwork for story about buyer caution
Adelaide’s hot market is losing some of its heat as househunters tread more carefully to avoid dire financial consequences in the future.
Property experts say “uncertainty” surrounding interest rates, capital gains tax, negative gearing, fuel and the war in the Middle East are making prospective buyers much more cautious.
Ray White SA chief executive Matt Lindblom said concerns about rising fuel prices and accessibility were having an impact, with buying habits already changing.
Homes closer to the city or public transport hubs were becoming more appealing to some, he said.
Ray White SA chief executive Matt Lindblom. Picture: Supplied.
“That’s definitely changing people’s viewing habits at the moment,” Mr Lindblom said.
“Most of the high demand areas are, generally speaking, inner suburbs or within good proximity to public transport.”
Mr Lindblom said it wasn’t unusual to see market activity slow just before an election or budget.
With so much uncertainty surrounding the upcoming May 12 federal budget, particularly regarding potential changes to capital gains tax, he said prospective buyers were taking a “wait-and-see” approach.
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“People still want to buy and they need to buy, but demand has decreased,” he said.
Demand would spike in some areas and decrease in others, Mr Lindblom said.
Harris Real Estate managing director Phil Harris said gone were the days buyers were more willing to pay premium prices if it meant they could secure a property.
Harris Real Estate managing director Phil Harris. Picture: Supplied.
He said they were more considered when it came to buying and keen to negotiate, especially given one to two more rate rises were forecast this year.
“There’s more conservatism, maybe more of an academic sense to buying,” Mr Harris said.
Despite buying demand softening, the market was still tight.
Latest PropTrack figures shows while new property listings were slightly up on the same time last year, there was overall still less stock on the market.
New properties on the market across Adelaide were up 2.1 per cent year-on-year in March but total listings were down 8.3 per cent, according to the data.
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