In a state where home values have surged over the last 12 months, new data reveals South Australian buyers are showing a growing preference for new homes. 

Data from REA Group’s 2024 Property Seeker Report has found that over the past 12 months, almost half (48%) of all buyers surveyed in South Australia are considering buying or have already bought a new home.  

The state also has the highest number of first-home buyers either buying or considering new in the country – almost two-thirds, or 63%.

This includes newly-built houses, off-the-plan apartments, townhouses and house and land packages.  

REA Group Senior Economist, Angus Moore, said this could be due to the state’s recent changes in stamp duty concessions.  

“South Australia is a little unique in that it doesn’t have a concession for first-home buyers buying existing homes, but does for first-home buyers buying new homes,” Mr Moore said. 

In June, stamp duty was axed entirely for first-home buyers of new builds, including off-the-plan apartments and house and land packages, regardless of the property’s cost. 

The government also removed property value caps on the $15,000 First Home Owner Grant, in an effort to boost new home building and provide relief for aspiring homebuyers. 

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A return to growth

Over the last 12 months, SA recorded the biggest decline in affordability of any state, according to REA Group’s PropTrack 2024 Housing Affordability Report.  

Despite this, home approvals are on the upswing, fueling interest from buyers.

In South Australia, 48% of all buyers have either purchased new homes or are considering taking the leap, made more attractive by recent stamp duty reform for new builds. Picture: Getty

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Dwelling approvals recently hit a 15-month high, rising nationally by 4.4% from August to September 2024, according to Australian Bureau of Statistics data.  

MORE: Building approvals hit 15-month high, signal return of new home buyers 

SA saw dwelling approvals 14% higher in September 2024 than the previous year.

For detached house approvals, the state recorded one of the highest increases, with approvals growing by 21.1% in September 2024, compared to the same time as the previous year.   

New home hot spots

PropTrack data looked at the local government areas (LGAs) in SA that are poised for an increase in the supply of new homes.  

In the 12 months to August 2024, Playford, Port Adelaide and Onkaparinga LGAs led approval numbers for houses, with 3964, 1922, and 1676 houses approved respectively.  

For apartments, Charles Sturt, Norwood and Marion LGAs led the way for new home approvals during the same period. 

Market strength

In October 2024, Adelaide recorded one of the strongest price growths of the capital cities, with prices up 14.91% in the last 12 months.  

While capital city prices continue to outpace those in regional areas, regional SA experienced the highest growth among regional areas in October, growing by 0.57% over the month. 

With the SA government committing to building up to 400 new homes in regional areas, this could spark more interest from buyers looking to build or buy new.  

“New homes provide a good balance of what buyers are looking for and that’s true for those that are looking to buy a bit further out on the city fringes, where many new homes tend to be built,” Mr Moore said. 

“For some buyers, that’s going to be attractive if they are a bit more affordable than inner-city areas.” 

Looking to buy new? Check out our dedicated New Homes section.