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{{propApi.successMessage}} {{region}} Change locationSouth Australia tops Housing Scorecard again
South Australia tops Housing Scorecard again
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The HIA Housing Scorecard report presents analysis which ranks each of the eight states and territories based on the performance of 13 key residential building indicators against their decade average, covering detached and multi-unit building activity, renovations, housing finance and rates of overseas and interstate migration.
“South Australia is one of the few markets where first home buyers can still afford a house and land package,” added Mr Knight.
“The state has capitalised on this relative affordability, with more and more people choosing it over the larger states to the east.
“South Australia has the strongest detached housing sector in the nation with activity remaining resilient to the rise in the cash rate.
“Recent efforts to increase higher density development in areas well serviced by transport will help accommodate this housing demand going forward.
“South Australia also has the nation’s strongest renovations sector that remains well above pre-pandemic levels of activity.
“Queensland took out second place in the rankings, trading places with South Australia over the last few years. The state has absorbed significant numbers of overseas migrants, as well as interstate arrivals, especially from New South Wales and Victoria.
“Western Australia has had a remarkable surge up the rankings. The state has capitalised on its affordability advantages and strong economic and employment opportunities to jump from seventh position into third in just one year.
“The main constraint for Australia’s mid-sized jurisdictions at the moment is simply getting enough labour to meet their housing demands, a constraint which is gradually easing.
“The largest states, Victoria and New South Wales, face the most acute land affordability constraints in the nation. This has left their detached housing markets more vulnerable to the compounding effect of rising interest rates. Combined with the dramatic decline in new apartment development as state governments tax investment in housing, this has driven these states down the rankings into fourth and fifth position respectively.
“The smaller states round out the rankings.
“The Australian Capital Territory’s multi-units sector has been a valuable source of activity for this jurisdiction, testament to local authorities’ commitment to higher density living. A significant number of residents have nonetheless left the Territory since the pandemic shifted into the rearview mirror.
“Tasmania’s slide down the rankings has been on the back of investors and local residents leaving the state after being such an important driver of the state’s pandemic and pre-pandemic booms.
“The Northern Territory is still dependent on major government or mining sector investment to push it significantly up the rankings.
“The synchronised cycle of the pandemic is coming to an end. The mid-sized states are pulling ahead,” concluded Mr Knight.
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