Cashed-up househunters are looking for pricier properties in South Australia’s booming market, new data reveals.
Figures from realestate.com.au show the percentage of search activity on the site for properties priced between $501,000 and $3.5 million had increased over the past two years.
While properties up to $500,000 remained among the most popular, the data showed the proportion of searches in that price range across the state dropped from 45 per cent in April 2019 to 36 per cent in the same period of 2020 then 29 per cent in 2021.
Meanwhile, the proportion of searches for property up to $1 million climbed from 14 per cent in April 2019 to 18 per cent in the same month of 2020 then to 20 per cent in 2021.
The data painted a similar picture for price brackets over the $1 million mark up to $3.5 million, albeit they were slight climbs.
Harcourts SA chief executive Gregg Toyama said a combination of factors were encouraging buyers to consider spending more, including confidence in the strong market and historic-low interest rates.
There were two main types of buyers behind the shift, he said – one being those who wanted to upgrade from the affordable first home they bought years ago.
“Because the (market is) so strong now, they’re feeling like they can sell their home, get a good price for it and move up,” he said.
“The top end of the market is driven by those people in their 40s and 50s, they’re cashed-up and might have had an investment property.
“They’re selling their investment properties (as well) and they’re being bought by first-home buyers, and now they’re buying dream homes.”
Mr Toyama said those moving from more expensive areas interstate or overseas were also likely looking for pricier homes as they got more bang for their buck in Adelaide.
Williams Real Estate partner John Williams said many buyers also didn’t have a choice but to search for more expensive properties as prices were rising so quickly.
“With house prices going up, they’ve got to search in higher brackets to get what they’re looking for,” he said.
“What was once $2 million a few years ago is now $3 million.
“People have reassessed their lives and they’re working out what’s important, they’re not travelling as much either.
“They’re putting more money into their houses as opposed to travelling.”
He said the top end of the market had been SA’s star performer over the past year.
“I think the luxury market is the strongest it’s ever been,” Mr Williams said.
“There are far more buyers around prepared to pay more for luxury homes.
“I think the top end has gone up as much, if not more, as the rest of the market.”
SA PROPERTY SEARCH ACTIVITY
(Max. search price, portion of searches in April 2019, April 2020, April 2021)
$250,000 – 5 per cent, 4 per cent, 3 per cent
$500,000 – 45 per cent, 36 per cent, 29 per cent
$750,000 – 28 per cent, 28 per cent, 29 per cent
$1 million – 14 per cent, 18 per cent, 20 per cent
$1.5 million – 6 per cent, 10 per cent, 11 per cent
$2 million – 1 per cent, 2 per cent, 5 per cent
$2.5 million – 0 per cent, 1 per cent, 1 per cent
$3 million – 0 per cent, 0 per cent, 1 per cent
$3.5 million – 1 per cent, 1 per cent, 2 per cent
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