Wondering whether real estate in Adelaide is a great investment opportunity? News from across the state border could hold some encouraging news. Off the back of the federal government's changes to the foreign investment policy framework, the Victoria state government has announced a few measures of its own – and they could have some unintended benefits for South Australia, according to the Property Council of Australia.
The Victorian treasurer will raise both stamp duty and land tax on foreign buyers in the state in its 2015-2016 budget, but SA executive director of the Property Council Daniel Gannon said this could actually benefit the property market in SA.
"This announcement means that South Australia could capitalise on spill-over investment from foreign investors driven out of Victoria by these punitive taxes," Mr Gannon said in a 7 May statement.
Mr Gannon also urged the South Australian government to steer well clear of the restrictive approach and instead embrace the role of foreign buyers in the state's property market. South Australia has already proven incredibly attractive to foreign buyers, with its mining and agricultural sectors offering rich rewards. In fact, according to the state government, it has the vast majority of the country's uranium and copper reserves, not to mention the fantastic wine and food produced in the region.
Record low interest rates should give buyers a little push in the right direction, as well, while growth in Adelaide's market could be another attractive incentive. According to CoreLogic RP Data, prices of detached property in Adelaide has risen 4.25 per cent over the past year, and units have been similarly steady at 3.61 per cent.
With promising signs on the horizon, South Australia could pick up the slack Victoria has left behind.