The South Australian property market’s long history of stability will save it from dramatic price slides despite the coronavirus crisis deepening, according to real estate experts.
While it won’t escape the fallout, experts predict the market will stay resilient and ride out the economic chaos.
Chief economist at realestate.com.au Nerida Conisbee said SA, notably Adelaide, had never experienced the sharp rises and falls of other cities.
“We don’t see that high volatility in Adelaide,” she said.
“South Australia, I see, is a relatively stable market.”
She said it was hard to compare COVID-19 to previous economic disasters, including the 2007 global financial crisis and the 1990s recession.
However, Ms Conisbee said the state had a high level of public sector employment, which was considered an essential service, ensuring people have the cash to keep the economy going.
“I think every market will drop … but Adelaide is a city that does have a high level of government employment,” she said.
“It is a little bit exposed to overseas education and a little bit to tourism but not as much as say Melbourne.”
Real Estate Institute of South Australia president Brett Roenfeldt said the Australian economy had proved to be resilient through similar crises so he had faith it would hold strong.
As with previous cases, he was confident househunters and sellers would flood South Australia’s market once the pandemic was over.
“It could create a phenomenal amount of business as people start to get back into doing what they need to,” he said.
“It’s going to take people a while to get back on their feet but there will be pent-up demand (for property).
“There is light at the end of the tunnel. The moment that we get to the end of that tunnel, then people’s attitude will be changing.”