SA MARKET OVERVIEW
SOUTH AUSTRALIA
Chris Cotton - Property Consultant | Harris Real Estate, Wine Coast
Thank-you for the opportunity to share your insights as part of The Property Development Review publication - the words “housing crisis” are echoing through the media at the moment, within your market are you seeing it getting easier or harder for buyers to get into the market. Prospective buyers are encountering significant challenges when trying to enter the real estate market. For instance, a recent property drew considerable interest, with 11 offers submitted after a single afternoon of showings. This level of competition highlights that there are at least 10 highly motivated buyers who missed out on this opportunity, reflecting a broader trend of intense local market pressure. Moreover, we are observing an increasing number of buyers seeking assistance from family members to navigate the competitive landscape. Parents are increasingly stepping in to support their children, and siblings are joining forces to purchase properties together. This trend underscores the heightened difficulties first-time buyers face and the growing need for collaborative purchasing strategies to secure a foothold in today’s market. What are you seeing in the market in terms of residential enquires on property? And as price guides become more accessible online, what kind of enquiry are you receiving? We’re noticing distinct patterns in the nature of buyer inquiries. When a price guide is included in a property listing, we generally see a reduction in the volume of inquiries. This suggests that potential buyers may be using the available price information to self-filter and prioritize their search, leading to fewer but more qualified leads. In contrast, for properties where pricing is less straightforward, such as acreages or unique homes, we observe a different trend. When price information is not provided and potential buyers are prompted to “contact agent” for details, we often experience a substantial increase in inquiries—sometimes up to 100 per listing. This indicates that the absence of a price guide can generate heightened interest and curiosity, as buyers seek more information to assess the property’s value and determine if it aligns with their budget and preferences. Overall, these trends highlight the significant role that price transparency plays in shaping buyer behaviour and the types of inquiries we receive. While price guides can streamline the inquiry process for more conventional properties, unique or less easily priced properties may benefit from a strategy that encourages direct engagement with potential buyers. Which segments & type of property in your market are exceeding expectation and what do you attribute this to? In our current market, vacant blocks of land are standing out as a prime example. This surge in demand can be largely attributed to recent removal of the property value cap for first homeowner’s grant in South Australia
CHRIS COTTON
120 – September / October 2024
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