South Australia continues to offer stability to investors

Herron Todd White’s latest Month in Review has shed light on the South Australian property market, noting that COVID-19 has had little effect. “Throughout the month of July, South Australia remained community transmission-free of COVID-19. At the time of writing, one new case has been recorded since 29 June, which has been linked to a resident returning from quarantine in Victoria,” the report said.

“Even as restrictions ease, the labour market has remained subdued, with the South Australian unemployment rate increasing from 7.9 per cent in May to 8.8 per cent in June, which is now the highest in the country. “As at 30 June, CoreLogic’s Home Value Index indicated the metropolitan market remained 2.04 per cent up on the same period 12 months ago, [but] has seen a 0.19 per cent contraction month-on-month.

“Historically, the South Australian market has lagged behind the east coast markets, which have shown signs of decline since late March. Considering the most recent market data and east coast market direction, it appears that the South Australian market could be entering the initial stages of a downward cycle. At this stage, the decline has only been slight and will be monitored closely in the short to medium term.”

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Emma Ryan - Smart Property Investment August 2020