Adelaide Property Appears Refuelled And Ready For Take-off
If the Sydney and Melbourne property markets have begun their ascent on a return flight towards previous record altitudes, and Perth’s is still in the hangar undergoing repairs, Adelaide would appear to be taxiing on the runway in preparation for take-off.
Adelaide is now leading the nation for house price growth within some parameters, with 65 per cent of suburbs experiencing rising markets over the past 12 months.
Following the release of the Valuer-General’s median house price data for the 2019 September quarter, REISA President Mr. Brett Roenfeldt said the latest figures once again showed a median price that had remained at record levels this quarter. Significantly, the median price also showed a growth of 0.40% since the same quarter last year.
Adelaide’s property market enjoyed a solid October, with a 0.9% increase in median dwelling values to $462,945 for houses and $322,142 for units. The auction clearance rate was a reasonably healthy 65%.
The annual picture is less vertiginous – more resembling a plain - with values flat over the past 12 months. But the fact Adelaide’s prices only fell 1.2% from their peak, compared to far more dramatic fluctuations in other capital cities, and that stock levels have not increased significantly, has it well-positioned for a period of steady if unspectacular, growth.
Katherine Skinner, Director of National Buyers, said the absence of any significant increase in stock levels meant buyers were acting fast to secure opportunities in high-growth areas.
“October saw a steady amount of investment-grade stock hitting the market and being snapped up by savvy investors within a number of days,” Ms. Skinner said.
“Historically, we usually see a surge of last-minute pre-Christmas property hit the market in the first week of November, but given the lower than usual stock levels, it will be interesting to see whether this occurs,” she said.
In another positive sign for investors, the rental vacancy rate in Adelaide is sitting at a very healthy 0.9%, making it one of the tightest markets in the country, which is a good sign for property prices.
Ms. Skinner pointed to a range of factors that were indicators of a robust Adelaide market, including extremely strong buyer sentiment across the metropolitan area, high investor activity both locally and internationally, and busy home opens.
“There are also specific local infrastructure works that will help drive demand,” she said.
The North-South Corridor is a series of road projects currently under construction or planning that travel through Adelaide, and will eventually form a continuous link from Old Noarlunga in the outer southern metropolitan suburbs through to Nuriootpa in the inner northern rural area around the Barossa Valley, a distance of over 100 km, aiming to be without a single stop by 2030.
“The Main South Road Duplication project (between Seaford and Sellicks Beach) is nearing completion and this will open up many more opportunities to the surrounding areas that have been, for so long now, affected by the ongoing delays.
“Once complete it will provide extremely easy access into the CBD, to the coast, Flinders Medical Centre, the university and Marion Shopping Centre – this is an area to be watching very closely in the coming 12 months.”
Suburbs that saw the largest growth over a 12-month period were Evanston, Taperoo and Gulfview Heights. Other big movers included Munno Para, Greenwith and Munno Para West.
Top selling suburbs in terms of recorded sales over the September quarter were the perennial number one Morphett Vale, as well as Hallett Cove and Aldinga Beach.
“The unit and apartment market are on fire at the moment,” Mr. Roenfeldt said.
“The median price in the unit market reached a new record level of $370,000, which was a fantastic 7.56% increase over the same quarter last year and a great 5.77% increase over the previous quarter.
“Sales were also significantly higher than the same period last year and only slightly down from the previous quarter, while sales in the suburb of Adelaide were triple the previous quarter and the same quarter last year, with median growths of 22% over the same quarter last year and 18% over the previous quarter.”
“South Australia will always be one of the best places in the world to live, work, invest and enjoy a great lifestyle,” he concluded.