Real estate agents say property tax increases in Victoria mean investment buyers are choosing to purchase houses in South Australia instead.
A PropTrack economist says SA homes prices are likely to keep increasing, but the state is still one of the "most affordable" markets.Investment property owners are selling up in Victoria to avoid increased taxes and buying in South Australia instead, according to real estate agents.New figures from PropTrack showed that house and unit prices continued to increase in SA in September, with the average sale price increasing by 15 per cent in Adelaide and 10.
"So we're finding that a lot of those investors are wanting to invest in particularly Mount Gambier, because you can buy something for $450,000–$500,000 and get $450–$500 a week rental return, which is still a good return on your money.This increase in interest from Victoria was making it harder for South Australians wanting to buy homes, he said, especially at the higher end of the market.
"The cumulative effect of all of those changes in the Victorian landscape means that a number of investors no longer see Victoria as a viable place to invest and, as a result, are selling their properties," she said.Ms Ryan said the lower prices could make it easier for first home buyers in the short term, but in the long term, there would be fewer houses and units built in Victoria.
"So reaching the housing targets that I know our state has — as do many others — is going to be incredibly difficult."The Barossa Valley, Yorke Peninsula and Mid North regions had the biggest price growths in regional SA over the the past year.
Land Tax Vacant Residential Land Tax VRLT Reiv Mount Gambier South East Proptrack Domain
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