With home values rising over the past year, new data shows South Australian buyers increasingly favor new homes.
New homes in high demand for South Australians,
According to REA Group’s 2024 Property Seeker Report, nearly half (48%) of all buyers in South Australia are considering buying or have already purchased a new home over the past year.
Furthermore, South Australia has the highest proportion of first-home buyers, with 63% either buying or considering new homes.
This includes newly-built houses, off-the-plan apartments, townhouses, and house-and-land packages, reflecting a growing trend in the state.
| First-home buyers by state | Property type: Newly built |
| New South Wales | 51% |
| Victoria | 51% |
| Queensland | 48% |
| South Australia | 63% |
| Western Australia | 52% |
According to REA Group Senior Economist Angus Moore, the rise in new home purchases may be linked to recent stamp duty changes.
He explained, “South Australia stands out because it offers a concession for first-home buyers purchasing new homes, but not for existing ones.”
In June, the government completely removed stamp duty for first-home buyers of new builds, including off-the-plan apartments and house-and-land packages.
Additionally, the government lifted property value caps on the $15,000 First Home Owner Grant to encourage new home construction and aid aspiring buyers.
A return to growth
Over the past 12 months, South Australia experienced the largest decline in affordability among all states, according to REA Group’s PropTrack 2024 Housing Affordability Report.
However, despite this decline, home approvals are increasing, sparking greater interest from potential buyers.
Recent data from the Australian Bureau of Statistics shows that dwelling approvals reached a 15-month high, rising by 4.4% nationally from August to September 2024.
In South Australia, dwelling approvals in September 2024 were 14% higher than the previous year, reflecting positive growth.
For detached houses, the state saw one of the most significant increases, with approvals rising by 21.1% in September 2024 compared to the previous year.
| State | Property type: Newly built |
| New South Wales | 42% |
| Victoria | 42% |
| Queensland | 36% |
| South Australia | 48% |
| Western Australia | 40% |
New home hot spots
PropTrack data analyzed local government areas (LGAs) in South Australia that are expected to see an increase in new home supply.
In the 12 months leading up to August 2024, the Playford, Port Adelaide, and Onkaparinga LGAs had the highest house approval numbers.
Playford recorded 3,964 house approvals, followed by Port Adelaide with 1,922, and Onkaparinga with 1,676 approvals during this period.
For apartments, Charles Sturt, Norwood, and Marion LGAs had the most new home approvals during the same timeframe.
| Buyer type | Property type: Newly built |
| Total | 41% |
| First-home buyers | 52% |
| Upsizers | 44% |
| Downsizers | 39% |
Market strength
In October 2024, Adelaide experienced one of the highest price increases among capital cities, with a 14.91% rise over the past year.
While capital city prices continue to outpace those in regional areas, regional South Australia saw the highest growth in October.
Regional SA grew by 0.57% during the month, reflecting a positive trend in the area’s property market.
With the South Australian government committed to building up to 400 new homes in regional areas, this could increase buyer interest.
“New homes offer a good balance of features that buyers seek, especially those looking at areas on the city fringes,” Mr. Moore said.
“For some buyers, these homes may be more attractive, as they are often more affordable than inner-city properties.”
