“South Australia still registers the highest unemployment rate in the country. A fact that will have to change if the brain drain stemming continues beyond the pandemic”
There are certain ways that the government is trying to put a plug in the brain drain. Two prime examples are increasing the number and quality of jobs, and the investment in Tonsley and Lot Fourteen developments.
What appeals to buyers and investors?
The suburbs showcasing good infrastructure, the potential for development, and places that appeal to budget-conscious buyers.
Both supply and affordability continue to be a concern, especially with the first homebuyers.
“The surge in demand in the heavily constrained housing market puts an ongoing burden not only on first-time homebuyers but also on investors enthusiastic about adding South Australian real estate to their rental portfolio. increase.”
For a long time, we have all know that stamp duty continues to be a major barrier to homeownership and creating a huge bump in the market especially for homeowners who are saving up.
“Homebuyers in our capital cities are now wearing stamp duty bills ranging from $20,000 to over $40,000 based on median house prices.
According to Head of Research, CoreLogic, “Stamp duty is a dead weight on the economy, reduces the efficient use of available housing stock by disincentivizing sales and leaves governments dependent on a volatile tax”.
This is creating a huge problem in the market as too many governments have become dependent on stamp duty and have been too disinclined to anticipate difficult reform options.
“Eliminating stamp duty will have the benefit of reducing barriers to homeownership, make it easier for people to be more flexible in the market as they raise families and get older, and provide an overall economic dividend”. He added.
Despite a recent upsurge in house values, residential and commercial dwellings in Adelaide still provide considerably more bang for the buck than in the major cities.