South Australia Property Report

Want to surround yourself with some of the world’s finest wineries, a pristine coastline, and long, hot summer days?

South Australia is one of the largest states in Oz but with the second smallest population. With plenty of property investment opportunities in South Australia and relatively little demand (compared to other Australian states), house prices are highly affordable.

The future of house prices in South Australia looks strong. As more and more Aussies and returning expats move away from the over-priced and over-populated capital cities, South Australia’s house price growth should steadily increase over the years.

Top Property Locations South Australia

South Australia is a far-reaching state bordering Victoria, NSW, Queensland, the Northern Territory, and Western Australia. You’ll find attractive property opportunities across the state. However, most of the top property locations in South Australia reside in the eastern areas. Regional SA and Adelaide have performed very well over the last few years.

South Australia Property Report

Encounter Bay

Median house price: $575,000

Encounter Bay is one of South Australia’s best-kept secrets. It has everything you need with an abundance of antique shops, art galleries, cafes, and restaurants. Moreover, the location is perfect for hiking, biking, swimming, surfing, fishing, and boating. About an hour south of Adelaide, Encounter Bay is the ideal medium between the city and regional South Australia.

Median house prices increased by 23.7% over the last twelve months, promising future price growth. Unit prices averaged $379,055, a 10.7% year-on-year increase—over 200 properties sold in the last year in Encounter Bay, averaging 38 days on the market.

Mount Gambier

Median house price: $350,000

Mount Gambier lies a few kilometres from Victoria in the southeastern corner of South Australia. Exactly halfway between Adelaide and Melbourne, you’re never too far from anything.

Mount Gambier is a beautiful city. Surround yourself with dramatic volcanic landscapes and crater lakes; the nearby Blue Lake turns cobalt blue in the summer months.

There are plenty of opportunities to buy a property in Mount Gambier. In the last year, the region sold over 700 houses and units in the area. Moreover, Mount Gambier properties are highly affordable. The median house price is $350,000, and units average $211,000. House prices increased 25% last year, while units grew 5.5% – offering a solid investment opportunity.

Murray Bridge

Median house price: $306,000

Murray Bridge is a good-sized city an hour outside of Adelaide. It’s an excellent location for shopping, water sports, skiing, or soaking up Australia’s rich history. Lying on the banks of the River Murray, the town played a significant role in linking Adelaide and Melbourne.

With over 400 houses sold this year, Murray Bridge is a great place to invest. House prices are up 22.4%. Meanwhile, the median unit price costs $245,000, with dramatic year-on-year price growth of 39.6%. Murray Bridge is a great place to live as an owner-occupier or rent out with investment mortgages.

South Australia Property Report

Average Property Price South Australia

As with all capital cities in Australia, Adelaide has witnessed increasing property prices over the last few years. However, unlike Sydney and Melbourne (where prices grew dramatically and now are declining), Adelaide’s house values are steady and continue to rise. The average property price in Adelaide is $647,241, making it one of the most affordable capital cities.

Average House Price South Australia

The median house price in Adelaide is $730,016. Three-bedroom houses cost $681,829. Showing steady growth, house prices increased 4.7% over ten years. At the beginning of 2021, house prices shot up in Adelaide, growing 25% in the last twelve months.

House prices continue to go up. However, they might soon stabilise, as we’ve seen in other cities across Australia. Speak to an expert mortgage broker about your home loan options to buy a property in Adelaide.

Average Unit Price South Australia

Unit prices in South Australia currently average $369,257. Unit prices remain relatively stable, only $100,000 more than they were 15 years ago. Over the last three years, unit prices have increased 7.4%. We specialise in unit home loans for expats; consult our team today to get advice on purchasing a unit in South Australia from overseas.

Average Apartment Price South Australia

Two-bedroom apartments in Adelaide, South Australia, average $370,631. Apartment prices began increasing earlier than houses but have grown relatively slowly. Over the last two years, apartment prices have increased from $291,000 – a 20% increase.

If you’re interested in buying an apartment in South Australia, we can help you seek home loan approval with competitive interest rates and manageable repayments.

Average Number of Properties Sold per Month in South Australia

In Adelaide, nearly 600 properties sold in the last year – 127 houses and 471 units. In an average month, almost 30 houses and over 100 units sell. In the more expensive suburban Unley (house prices averaging $1,500,000), fewer houses sell, around 20 houses and units each month. Whereas Salisbury in Greater Adelaide saw over 200 properties sell in the last year.

Other parts of South Australia are also highly popular with home buyers. For example, Port Augusta had 70 houses sold per month. In Whyalla, around 33 sell each month.

If you’re searching for a property in South Australia, speak to our mortgage brokers about available expat home loans.

South Australia Property Report

Stamp Duty Costs in South Australia

You must pay stamp duty when you buy a house in South Australia. Stamp duty payments are calculated as a percentage of the property value, rental property, or vacant land. First-time buyers do not have to pay stamp duty.

However, foreign purchasers must pay a 7% stamp duty surcharge. As an Australian expat, this does not apply to you. If you jointly buy a property with a foreign spouse, you may need to pay the surcharge. Speak to our team for advice on applying for mortgages from abroad.

South Australia’s stamp duty rates:

  • Property valued between $0 – $12,000: 1%
  • Property valued between $15,000 -$30,000: $120 plus $2 for every $100 over $12,000
  • Property valued between $30,000 – $50,000: $480 plus $3 for every $100 over $30,000
  • Property valued between $50,000 – $100,000: $1,080 plus $3.50 for every $100 over $50,000
  • Property valued between $100,000 – $200,000: $2,830 plus $4 for every $100 over $100,000
  • Property valued between $200,000 – $250,000: $6,830 plus $4.25 for every $100 over $200,000
  • Property valued between $250,000 – $300,000: $8,955 plus $4.75 for every $100 over $250,000
  • Property valued between $300,000 – $500,000: $11,330 plus $5 for every $100 over $300,000
  • Property valued above $500,000: $21,330 plus $5.50 for every $100 over $500,000

The average house price in Adelaide ($730,016) would cost $33,985.50 in stamp duty fees.

Other Property Costs in South Australia

  • Deposit: You should put down a deposit of at least 20 – 30% of the purchase price to avoid paying lenders’ mortgage insurance. The higher your mortgage deposit, the more likely you’ll receive home loan approval. Plus, you’ll get more competitive home loan terms and interest rates.
  • Valuer Fee: Between $300 and $600. Rural houses in South Australia may cost up to $1,000 for a professional valuation.
  • Conveyancing and Legal Fees: Between $800 to $1,500.
  • Lender Fees: Between $300 to $800.
  • Building Inspection Fee: Between $300 to $600.
  • Pest Inspection Fee: Between $300 to $600.
  • LMI: This depends on your loan-to-value ratio. If your financial situation changes, you can refinance your home loan to discontinue LMI monthly repayments.
  • Mortgage Registration Fee: $179

FIRB Application Fees: Between $4,000 and $237,600, depending on the property value. Note that Australian expats and residents do not need to apply to FIRB.

Loan Options

As an Australian expat, you’re eligible for most home loan products. For instance, you can take advantage of fixed-rate mortgages and pay a regular monthly amount. Alternatively, you could pay reduced monthly repayments for the first few years of your loan with an interest-only mortgage.

Additionally, you can apply for an offset account or redraw facility to ease the financial burden of your home loan. Speak to a mortgage broker about your expat home loan options and available services.

South Australia Property Report

Pros and Cons of Buying in South Australia

South Australia’s housing market continues to see growth and increasing demand for housing without any signs of slowing down. It’s an excellent time to invest in Adelaide or regional South Australia.

The advantage of buying a home in South Australia is its historically strong economic growth. Adelaide and regional SA have had very few significant setbacks in the market. Moreover, unlike other cities in Australia, Adelaide didn’t see a dramatic housing boom during the coronavirus pandemic. Instead, you can rely on steady house prices and future growth potential.

Plus, key infrastructure plans suggest that South Australia will continue to become a highly sought-after location for homeowners.

The disadvantage of buying a home in South Australia is slow growth. While house prices are increasing, they are doing so at a more marginal rate than other areas. Units, especially, have not gone up in value significantly.

Key Facts About South Australia

South Australia is wide-reaching, but most of the population (1.4 million of the 1.8 million in SA) reside in Adelaide. That said, Adelaide is a small city. You can drive from one side to the other in just 20 minutes. Contact our expert mortgage brokers about your expat home loan options if you’re eager to settle in a city with a homely feel.

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