- Strong state economies, like WA and SA, consistently support high property price growth and attract long-term investment interest.
- Perth’s property boom has eased, but WA’s economy remains strong enough to prevent major price declines.
- South Australia’s evolving economy and consistent demand have made Adelaide and regional markets strong performers with ongoing growth potential.
The link between the strength of local economies and the performance of property markets is undeniable.
A state’s nation-leading economic performance often coincides with high property price growth, according to Hotspotting General Manager, Tim Graham.
It’s something that Hotspotting has been tracking for many years. A good example of the theory is Western Australia. It has been consistently one of the top two state or territory economies in the nation for the past three years, according to CommSec.
That coincided with the high price growth experienced across the Perth market in that same time period. Its regional markets also performed well, including Bunbury, Mandurah and Geraldto,n with some locations achieving exceptional growth in property values.
Although more recently, however, there has been a growing number of indicators which confirm that the Perth boom has passed its peak with sales activity dropping, vacancies rising and price growth evaporating, Mr Graham said the strong economy of the state will provide the market a solid buffer.
“The continuing strength in its economy suggests that there is unlikely to be significant price decline – in contrast to the previous major Perth upcycle inspired by the resources investment boom, which was followed by several years of falling house price.”
Tim Graham, Hotspotting
South Australia is another good example of a strong economy also leading to solid price growth. In the past two years it topped the economy leaderboard three times and has been second to Western Australia time and again.
It has been a growth market for longer than any other jurisdiction in Australia and it remains so.
Its markets have been among Australia’s top markets for property price growth in the past two years and it has recorded consistent transaction levels for at least four years. Adelaide and much of South Australia are very busy markets and are expected to remain so throughout 2025.
Demand remains strong as the Adelaide economy continues to grow and evolve from one of manufacturing to a science, technology and a knowledge-based powerhouse.
Hotspotting has identified seven South Australian suburbs or towns, within Australia’s National Top 50 Supercharged suburbs, including two in Tea Tree Gully (Modbury and Modbury Heights), Mawson Lakes ( Salisbury), Munno Para West (Playford), Prospect (Prospect) Campbelltown (Campbelltown) and Port Augusta (Port Augusta).
“There are many factors which combine to make a location worthy of investment and locations backed by a strong economy, whether that be just at a council level or a state level, is one aspect that definitely needs to be factored into investment decisions,” Mr Graham said.
