Property prices in Alexandrina council rise with water levels

As the water level rises in the River Murray, median property prices are also increasing in the Alexandrina Council area climbing by as much as 12.5 percent to $370,000 in December.

The Alexandrina Council area comprises of Goolwa, Goolwa South, Milang, Clayton Bay and Hindmarsh Island. Real Estate Institute of South Australia president Greg Nybo says that rising water levels had stimulated confidence in the region.

"As the water levels have improved, tourists are starting to go back into those areas and there is more money being spent within the economies," he said. "It's all part of it and it's all about confidence."

The price growth areas were seen in Goolwa South and Hindmarsh Island, where median house prices grew by 24.3 percent and 23.4 percent compared to the first quarter of the year.

Marina Hindmarsh Island chief executive Andrew Chapman attributed the rising water levels as helping to attracting buyers with interest just as strong as it was prior to the drought and the GFC. Local authorities say that the area has become more positive with the rising water levels.

"Once the water came back, confidence in the market came back with it," said Alexandrina Council mayor Kym McHugh. "We lost a lot of boats in the area when the water levels were low but a lot of them have come back and I think we are in for a really good holiday period."