The Reserve Bank of Australia’s (RBA) decision to lower the cash rate by 25 basis points to 4.1% is set to add further strain to South Australia’s already tight property market, where a lack of housing supply has been pushing prices up for months.
With interest rates dropping, buyers now have increased borrowing power. However, South Australia was already facing a housing shortage before this cut. New sales listings have decreased by 12.0% in Adelaide and 11.3% in regional SA compared to this time last year - the largest declines across Australia. With the recent rate cut, further competition is expected - driving prices higher and making it even harder for first-home buyers and upgraders to secure a property.
"We’re still seeing demand far outstrip supply, and with this rate cut, competition is only going to intensify," says Peter Theodorou, Mindset Property. "Properties are already selling quickly, and this will make the process even more challenging for buyers who aren’t prepared."
With buyers scrambling for limited properties, sellers are in a strong position, but unrealistic price expectations may still pose a challenge.
"Sellers may see this as a golden opportunity, but affordability is still a concern," says Ashley Williams, Selling SA Homes. "Buyers might have more borrowing power, but cost-of-living pressures mean they’re still being cautious with their budgets."
South Australia’s rental market was already stretched, and as homeownership becomes more difficult, more people may be forced to continue renting—driving up demand and rental prices even further.
"For investors, lower rates and rising rents may seem like a win, but yields aren’t always keeping up with property price growth," says Ami Reynolds, Broker That. "It’s important to crunch the numbers and ensure the investment stacks up long-term. Buyers also face intense competition and need to position themselves as strong contenders by securing pre-approval for their finance."
What Buyers Should Do Now
Get pre-approved – With properties selling fast, having finance in place gives buyers an edge.
Be ready to act – More competition means less time to hesitate.
Consider all options – With limited supply, buyers may need to expand their search areas or adjust their expectations.
South Australia’s housing shortage has been a growing issue, and this rate cut only adds to the pressure. Buyers must be proactive, sellers should price strategically, and renters may face even tougher conditions ahead. In a market moving this fast, professional advice is key.
Need help buying or selling?
Ami Reynolds – Broker That | www.brokerthat.com.au
Peter Theodorou – Mindset Property | www.mindsetproperty.com.au
Ashley Williams – Selling SA Homes | www.sellingsahomes.com.au
Comentários