AVERAGE house prices have skyrocketed by 45 per cent in Renmark over the past year, new figures show.
The attraction of regional living, plus incentives to build a new home, have helped prices almost double since June 2020, according to research aired in Renmark last week by the Real Estate Institute of South Australia (REISA).
Average property prices in South Australian non-metro major towns increased from $270,000 to $280,000 between the March 2020 and March 2021 quarters, with average metropolitan Adelaide prices increasing from $479,000 to $518,000 during the same period.
REISA chief executive officer Barry Money told last week’s Regional Road Show – held last Tuesday and Wednesday at the Renmark Club – average property prices had spiked in Renmark – and increased less spectacularly in Barmera – in a trend described as “good for the vendors”.
“Median prices in Renmark have increased 45 per cent over 12 months,” Mr Money said.
“Berri has gone down… and Barmera has gone up by about 7 per cent.
“Metro dwellers are looking at Renmark as a good spot…
“People can have the bigger homes in the regions, and have the hybrid work and lifestyle balance.”
Ray White Renmark principal Aaron Willis said current Riverland property prices would have been “unexpected” 18 months ago.
“There’s a high demand for homes in all price ranges at the moment, from $100,000 through to $500,000,” Mr Willis said.
“This is being driven by low interest rates, and a lot of people from out of the region moving to the area.
“We’re getting a lot of interest from Victoria and New South Wales… but also people from Adelaide relocating out here as well.
“(But) even though we’ve had quite a jump in pricing, it’s still far more reasonable than other capital cities.”
Mr Money said economic recovery from the impacts of Covid-19 had seen buyers from Adelaide and interstate move to the Riverland.
“Consumers have got more discretionary income these days (because) they’re not travelling overseas, and for the best part job security has been relatively protected post-Covid,” he said. “People are spending more money on homes, renovations, and buying new properties…
“The market is being driven by consumers.”
Mr Money said regional property markets often provided a “barometer” for the rest of South Australia.
“Through Covid where we’ve seen the increase in prices and competition in metropolitan (Adelaide), that reverberates out to the regions,” he said.
“Then when we see a plateauing that starts in the regions and then works its way back to the metro.
“Because the competition has been so fierce, you’ve had a ‘fear of missing out’ mentality in consumers, and that’s driven prices (up). That’s reverberated out into the regions.
“The market is still strong and still fundamentally a sellers’ market, but we’re beginning to see buyers who will bide their time a bit more.”