SA Economy

[PeFe]

The return of the Andrews Labor government in Victoria is great news for South Australia !! Why ???

Because the Andrews government has promised to provide subsidies for the purchase of batteries connected to solar panels, hopefully mandating that those batteries be made in Australia........and where in Australia do they make batteries for solar power?.....little old Adelaide (Sonnen, Alpha-Eess and Eguana)

I would not be surprised if a few members of the SA Liberal government were cheering in secret on the news of the Andrews government re-election.

[Jaymz]

It seems Adelaide is hot property right now, values rising while much of the country is falling.


https://www.realestate.com.au/news/adel ... aa:article

[HiTouch]

thank Steven Marshall and his removal of certain red tape for that!! #allhailmarshall

[Verbatim9]

thank Steven Marshall and his removal of certain red tape for that!! #allhailmarshall

Bad thing for new entrants into the market. Good thing for retirees or young families wanting to move interstate for retirement or professional reasons.

[SBD]

thank Steven Marshall and his removal of certain red tape for that!! #allhailmarshall

Bad thing for new entrants into the market. Good thing for retirees or young families wanting to move interstate for retirement or professional reasons.

So if the report had been that SA median house value had fallen, what would be your negativist view in that case?

Median house prices roughly matching inflation provides confidence in the market for everyone, and perhaps especially people considering buying their first home. Who would want to take out a large mortgage to enter a property market that fell by 10% last year like Sydney and Melbourne's? Maybe you'd be buying at the bottom of the market and it'd turn out to be a good investment. Maybe you'd be borrowing to buy the house, AND to buy significant "mortgage loss insurance" to cover the bank in the event that you are no longer to pay a mortgage that is worth more than your house in a couple of years. Maybe after the royal commission, it just stops being an issue for you as there might not be a bank prepared to lend someone with limited credit history to buy real estate in a falling market.

I am quite happy to live in a place with a stable, slowly growing, housing market.

[Jaymz]

thank Steven Marshall and his removal of certain red tape for that!! #allhailmarshall

Bad thing for new entrants into the market. Good thing for retirees or young families wanting to move interstate for retirement or professional reasons.

Hardly. Our property prices are still very affordable compared to many other capitals, which is probably the main reason Adelaide prices are holding up, as opposed to any one or two local policies.

Sydney and Melbs are having a much needed correction, there's absolutely no logical reason Sydney for instance, should be double the price of Adelaide. It's been investors fuelling those prices, now they're spooked and looking elsewhere for better value. Hobart has just had a big run, now it's probably time for Adelaide to have a similar run.

[Nort]

Sydney and Melbs are having a much needed correction, there's absolutely no logical reason Sydney for instance, should be double the price of Adelaide. It's been investors fuelling those prices, now they're spooked and looking elsewhere for better value. Hobart has just had a big run, now it's probably time for Adelaide to have a similar run.

Close to the city it makes sense that Sydney would be more expensive than Adelaide, there is more demand for a limited amount of supply.

Out on the fringes of suburban sprawl though, yeah they should be about the same.

[Jaymz]

Sydney and Melbs are having a much needed correction, there's absolutely no logical reason Sydney for instance, should be double the price of Adelaide. It's been investors fuelling those prices, now they're spooked and looking elsewhere for better value. Hobart has just had a big run, now it's probably time for Adelaide to have a similar run.

Close to the city it makes sense that Sydney would be more expensive than Adelaide, there is more demand for a limited amount of supply.

Out on the fringes of suburban sprawl though, yeah they should be about the same.

Yeah, I agree with you that's partly why Sydney is more expensive.......but double?? Seems a bit excessive.

A Sydney median of say, $100 - $200K more than Adelaide would seem much more sensible.

[Aidan]

In Sydney there's more demand in two ways: not only are there more people, but also many of them can afford to pay a lot more.

Even on the fringes, supply is limited but there's a financial advantage to living in the Sydney area.

[Jaymz]

In Sydney there's more demand in two ways: not only are there more people, but also many of them can afford to pay a lot more.

Even on the fringes, supply is limited but there's a financial advantage to living in the Sydney area.

Perhaps. But surely it's got to the point now that any financial advantage from living in Sydney/Melbs would be eroded by the cost of living.... particularly the price of an average dwelling.

What I was trying to get at with all this, is that how can the average Sydney dwelling price be double that of Adelaide/Hobart/Perth and lesser extent Brisbane, when their average income is far less than double ours. It makes no economic sense. Without a doubt the Syd/Melbs housing market had become way over inflated and is now being brought back into a more realistic price range, and it might not have hit the bottom yet.

[Aidan]

It makes plenty of sense, Jaymz — try thinking about it a bit more. Although the cost of housing is higher in Sydney and Melbourne, the rest of the cost of living is about the same. Even if house prices there do fall further, they'll be higher than ever a few years later.

[HiTouch]

It makes plenty of sense, Jaymz — try thinking about it a bit more. Although the cost of housing is higher in Sydney and Melbourne, the rest of the cost of living is about the same. Even if house prices there do fall further, they'll be higher than ever a few years later.

Happy 2000th post Aidan!!!!

[ml69]

In Sydney there's more demand in two ways: not only are there more people, but also many of them can afford to pay a lot more.

Even on the fringes, supply is limited but there's a financial advantage to living in the Sydney area.

Perhaps. But surely it's got to the point now that any financial advantage from living in Sydney/Melbs would be eroded by the cost of living.... particularly the price of an average dwelling.

What I was trying to get at with all this, is that how can the average Sydney dwelling price be double that of Adelaide/Hobart/Perth and lesser extent Brisbane, when their average income is far less than double ours. It makes no economic sense. Without a doubt the Syd/Melbs housing market had become way over inflated and is now being brought back into a more realistic price range, and it might not have hit the bottom yet.

I’ve been following Australian realestate since the late 1980’s.

Even back then when the average Adelaide house was less than $100k, Sydney was nearly $200k.

There have always been ebbs and flows with each market at different stages of the real estate cycle, but the rule that hold true over the past 30 years is that average Sydney real estate prices are between 1.5 to 2.5 greater than the average Adelaide price .... 1.5 times after Adelaide has had a price surge and 2.5 times after a Sydney price surge.

Sydney people have always paid a greater % of their income on mortgage repayments, because as already mentioned, there’s not a huge difference in costs on other non-housing related items.

[Jaymz]

Thanks for the info ml69.

I too have followed real estate for the past couple of decades. But it's mostly been Perth and Adelaide, as they've both been my home during that time. I was living in Perth when it boomed 15 years ago (prices doubled over a 3 year period) but it's now been in decline for the past 4 years. An interesting fact, Adelaide now has more $1 million suburbs than Perth.... who'd have thought

[Jaymz]

In addition to what I mentioned above, here's an article published recently that Adelaide had 27 $1 million+ suburbs in 2018.

Just a note: These figures can be a bit rubbery due to the low volume of sales that some of these exclusive smaller suburbs have, but nonetheless
it's a big vote of confidence in the state as a whole right now.......

https://www.realestate.com.au/news/mill ... -adelaide/