South Australia’s Regional Realty Sales Booming
Real estate agents across South Australia are reporting a boom in regional property demand, prompting some to utilise a sale-by-expressions-of-interest approach more typical to commercial properties. Harcourts Adelaide Hills principal, Kim Shorland, told they were experiencing “incredible” demand for residential properties, with most people coming from the city plains or the eastern seaboard.
It follows a wave of inquiries earlier this year, after the COVID-19 pandemic resulted in social restrictions across the country and people were directed to work from home if possible.
Shorland said a recent open inspection on a small acreage cottage in Mylor attracted 300 people in half an hour, and several Adelaide Hills auctions had done “exceptionally well”. But she said their preferred approach to sales under the circumstances was expressions of interest (EOI).
Known colloquially as a Dutch auction, it is when a property is advertised without a price and potential buyers are instead encouraged to do their research and provide their best and only offer in writing. Shorland said she was aware the approach “frustrated” a lot of people, but pointed out that agents were still able to give a value indication to potential buyers based on recent sales in an area.
People are having such varied opinions on prices, so it’s in our owners’ best interests that we have an EOI, she said. We’re seeing that price variance can be $300,000. If we put a price on a property, our owners are going to miss out on obtaining that highest price.