The number of houses going under the hammer in the regional city of Whyalla has been steadily outpacing its neighbours.
On average, sales activity in Whyalla has doubled compared to Port Lincoln, Port Augusta and Port Pirie, according to data from CoreLogic.
Executive research director with CoreLogic, Tim Lawless, said compared to this time last year, sales had increased by roughly 25 per cent and just over 70 per cent on the five-year average.
However, the spike in sales activity is still below the peak seen before interest rates rose in April 2022, Mr Lawless said.
“Interestingly enough, we’re also seeing vendors more active as well,” he said.
“If you look at the flow of new listings coming into the market in Whyalla last month, or the month of May, we saw 51 new listings coming into the marketplace.
“That’s about 40 per cent higher than a year ago … [and] up on the decade average by about 61 per cent higher than average.”
Despite the high volume of sales, demand for property is still high, with dwellings spending an average of 32 days on the market “against the long-run average of 87”.
Hydrogen key to Whyalla’s boom in property sales
Elders state real estate manager Caela Griffin said investment in Whyalla’s future hydrogen industry was driving the market.
Ms Griffin said roughly 70 per cent of their buyers were investors, half of whom were buying properties sight unseen.
“Having that higher level of state government funding creates long-term confidence that you don’t necessarily see in some of those other towns,” she said.
“Port Lincoln has nowhere near the same affordability and also is much more reliant on one or two primary industries.
“Whilst there has been some uncertainty with some of the mining and steel works [in Whyalla], I think there’s enough confidence of long-term employment prospects, that it’s not going to have an impact on the real estate market.”
Despite the increased sales activity, Whyalla’s property values have not climbed as high as neighbouring towns such as Port Lincoln, which rose by 15.5 per cent in the last 12 months, or Port Pirie, which rose by 10.9, according to the latest CoreLogic figures.
In comparison, Whyalla’s property values have increased by 9.4 per cent in the past 12 months.
Ms Griffin said this disparity was a bonus to investors who were looking for “value for money”.
As an example, Ms Griffins’ agency currently has a duplex listed for roughly $200,000, with a tenant in-situ paying $300 a week in rent.
Within a couple of days of listing the property, her agent received more than 30 enquiries and multiple offers.
Whyalla’s ties to renewable energy and the defence force mean it’s a safer investment than other neighbouring towns, Ms Griffin said.
“The diversification of different things happening there … is going to see Whyalla continue to thrive from a regional South Australia perspective,” she said.
“So I certainly think that that’s the reason why there’s so much interest and I don’t see that slowing down any time soon.”