The month in review: Adelaide

By Herron Todd White
April, 2010

The holiday house has long been the symbol of personal success and a buoyant economy, whether it is a fibro at Foul Bay or a modern, multi level, multi bedroom house at Hayborough.

During the recent period of prolonged growth in real estate markets and economic prosperity, spending on holiday accommodation surged. South Coast areas located within an hour of the proved most popular and prices reflected this, while southern Fleurieu towns fared well also despite not enjoying the same level of services and facilities.

The south coast town of Victor Harbor is possibly the dominant holiday destination although ‘shack’ style accommodation has long gone. Recent development has centred on the beachside strip and rising land overlooking Encounter Bay. Nearby smaller settlements of Middleton, Pt Elliot and Goolwa retain many of the older ‘weekenders’, although development pressure has been mounting in recent years.

Riverland towns are traditionally popular, but are feeling the effects of the lack of water in the river system and the recent economic turmoil. The shortage of riverfront property will underpin values in this regard, however complexity associated with the leasehold tenure, often remote access and limited amenities will balance this demand to some extent. Further from the city are destinations on Yorke Peninsula, which generally appeal to longer holidays.

Recent months have seen the volume of holiday home sales declining generally although this is expected to increase as financial pressure mounts. Only after volumes rise to a reasonable level will we be able to quantify the current level of this market.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2009 Smartline Home Loans P/L. ABN 38 085 370 270