Prices Rise In South Australian Coastal Real Estate

Coastal real estate in South Australia is defying a national pattern, and recording significant growth in the price of coastal properties, according to RP Data.

RP Data shows that in some South Australian suburbs, price rises have increased in excess of 17 per cent, with some suburbs such as North Beach seeing a 28 per cent rises in the cost of real estate.

Real Estate Institute of South Australia (REISA) president Greg Moulton told News Limited that up until now, some suburbs were being undervalued compared to equivalent Western Australian suburbs.

"And metropolitan coastal areas have shown good growth in the past five years but those areas further out have been undervalued," Moulton said.

The types of people who are contributing to this increase include retirees looking for a summer retreat and the appeal of a summer beach 'shack'.

It comes as the REISA celebrates the increase of housing affordability across the country. The June quarter of 2012 saw a decrease in the proportion of income needed for loan repayments to 31.9 per cent, down by 0.8 per cent.

This also corresponds in the number of loans, with South Australia recording an eight per cent jump in the number of first home buyer loans.