Industry experts say SA’s property market is resilient. Picture: Brenton Edwards.
Househunters are being more cautious as uncertainty shrouds the property market, but experts assure its not all doom and gloom.
With interest rates continuing to climb, fuel prices remaining high and major tax laws for property investors set to be reformed in the federal budget this week, some buyers are holding back.
Ray White SA chief auctioneer John Morris said heading into the weekend of auctions felt like stepping into the unknown ahead of the budget on Tuesday, when changes to both negative gearing and capital gains tax were set to be made.
“We can understand the apprehension of buyers coming into the market at the moment,” he said.
Ray White SA chief auctioneer John Morris. Picture: Supplied.
“Our bidder numbers are down, our clearance rate is down but it’s down from such a high and consistent vantage point that even though it seems like a slower market … it’s actually still a very, very strong market in South Australia.
“We have bidding at over 92 per cent of our auctions and two-thirds of properties that are going through to auction day are selling.”
Ray White figures show Adelaide had an auction clearance rate of 62.2 per cent last week, only slightly down on the 63.1 per cent recorded the week before and 69.8 per cent at the same time last year.
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Mr Morris said there was still a lot of strength and resilience in Adelaide’s market, with an average of four registered bidders and two of those participating at each auction, but it was getting a little bit tougher.
“We’re still exceeding expectations of what the sellers are wanting,” he said.
“While I’m still selling a lot under the hammer on the day, it is getting a little bit harder.
“We are seeing more negotiations, but we are still seeing an extremely strong auction market and still very, very strong sales.”
The construction industry was also feeling the impact, with the most recent rate rise adding to existing pressures.
Master Builders Association of South Australia chief executive Will Frogley. Picture: Kelly Barnes.
But Master Builders SA chief executive Will Frogley said maintaining confidence and momentum were key to the industry’s resilience.
“Builders, subcontractors, and homeowners continue to navigate elevated costs and workforce constraints in a challenging environment,” he said.
“Careful management of financing costs will be key, as projects are assessed for viability.
“With the right conditions, many developments can still move forward, supporting jobs, investment, and housing supply.
“Importantly, this moment presents an opportunity to strengthen the sector through targeted reforms.
“We need greater certainty around planning, faster approvals, and continued investment in skills to help unlock projects and sustain activity.”
“With co-ordinated support and a stable policy environment, the building and construction industry will continue contributing to economic growth and building houses the community so desperately needs.”
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