Properties across regional and rural SA are expected to be largely unaffected by tax reforms. Picture: NCA NewsWire/Brenton Edwards.
Homes across regional SA are almost immune to the federal budget tax reforms, with property values continuing to climb despite those in Adelaide starting to fall.
Industry leaders are expecting regional and rural markets to perform very differently to metropolitan ones over the coming months as people adjust to the recent capital gains tax and negative gearing changes.
It comes as latest PropTrack data shows regional SA’s median dwelling price – which is calculated on both houses and units – climbed 0.3 per cent in June and 12.7 per cent for the year to $522,000.
Meanwhile, Adelaide’s median dwelling price dipped 0.2 per cent for the month to $942,000 but was 11.9 per cent higher over the year.
Ray White SA chief executive Matt Lindblom. Picture: Supplied.
Tasmania, SA and NSW were the only regional markets to record gains in June, while the former two equally recorded the strongest monthly growth out of all the capital cities and regions.
Ray Way SA chief executive Matt Lindblom said slow growth, strong rental yields and affordable prices were among the main reasons regional and rural markets would hold strong and remain largely unaffected.
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“Most regional properties aren’t negatively geared so that hasn’t really affected them,” he said.
“In regional properties the capital gain historically isn’t as strong and the yields are so good.
“The new tax rules with the capital gains changes either have a positive or neutral – or very minimal negative – affect on the market.
“Regional SA is also a very popular first-home buyer market because of the price point – the properties selling really well are under $900,000.”
REA Group senior economist Anne Flaherty. Picture: Supplied.
REA Group senior economist Anne Flaherty agreed, explaining the strongest performing markets were those offering the greatest affordability – regional areas and units.
“Looking ahead, affordability is likely to remain a key driver of market performance, with the share of buyers looking to purchase in more affordable areas, such as regional markets, expected to increase,” she said.
“As yet, the full impact of the budget on investor demand remains to be seen.
“Overall, conditions appear to have improved for first-home buyers, who will benefit from lower home prices and less investor competition in 2026.”
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