CoreLogic figures released earlier this month show the median house price in Australia increased by 18.4 per cent since September last year, the fastest pace of growth since 1989.
In Adelaide, the increase for the year was 17.9 per cent to a median value of $522,000.
How has the pandemic impacted South Australia’s real estate market and what does the significant surge in housing demand mean at a time when overseas migration has stalled?
These are some of the topics discussed on Wednesday, September 15, at the second Business Breakfast panel discussion hosted by St George College, as part of the school’s efforts to raise funds for the refurbishment of its Senior Campus.
The event was opened by St George College Principal Peter Karamoshos with Senior Reporter, Andrea Nicolas leading the conversation that followed.
The panel was comprised of the Mayor of the City of West Torrens Michael Coxon, Director of Xsell Property Andrew Kyriacou and lawyer Elias Farah.
A one in a generation peak
“We are amazed by how many people want to buy a house at the moment…It’s the classic undersupply and increase in demand that’s been going on since November last year,” said Kyriacou responding to a question about his workload during the last year.
“We’ve been the busiest we’ve been in eleven years and this cycle is a one in a generation boom,” Partner, Commercial and Legal, Elias Farah, said.
The surge in demand has created a shift in the demographic of home buyers with nearly two-thirds of Australians thinking home ownership won’t be an option for young people as property prices rise.
That’s particularly the case in cities where house prices are booming but wages aren’t as strong.
The National Housing Finance and Investment Corporation found affordability was worst for potential first homebuyers in Sydney and Hobart, with less acute affordability issues in Perth and Adelaide.
“Let’s not forget about the first home buyers and how they will enter the market. We are seeing a change in the demographic of people that are more attuned to living in residential denser environments,” Mayor Coxon said.
The panel also discussed the build-to-rent model as a potential solution to relieve the pressure from first home buyers and what are the difficulties in adopting it in South Australia.
The school’s Year 10 and Year 11 students who study Hospitality prepared and served the attendees with a scrumptious breakfast and the morning concluded with St George College Principal, Peter Karamoshos thanking all and renewing the invitation for next year.
*Photos © The Greek Herald/Argyro Vourdoumpa