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Why investing in Adelaide makes sense

Adelaide's property market is traditionally more stable than other Australian capital cities, making it one of the safest housing markets to invest in.

CONSISTENTLY STABLE HOUSING GROWTH

Adelaide's property market is traditionally more stable than other Australian capital cities, making it one of the safest housing markets to invest in.

It has also proven to be less volatile to market fluctuations, as evident through the COVID-19 pandemic and the Global Financial Crisis.

Because migration isn’t a fundamental factor driving housing demand, it is expected Adelaide’s sales and rental market will be more insulated to price drops during boarder closures in 2020.

weekly asking property prices

PREDICTED TO OUTPERFORM OTHER CAPTIAL CITIES IN 2021

Adelaide is the second most affordable capital city in Australia and one of the few cities to record positive price growth in the April – June 2020 quarter during the COVID-19 pandemic.

ANZ Bank predicts the Adelaide housing market to be one of only two capital cities that will experience positive price growth in 2021, with values predicted to rise by 2 per cent.

Dwelling Values
SOURCE: CoreLogic Hedonic Home Value Index June 2020
Housing price forecasts
SOURCE: ANZ Bank

STRONG RENTAL MARKET

Adelaide is an attractive location for property investors providing consistently strong gross rental yields over the past decade.

The rental market has remained solid through the pandemic with June 2020 figures revealing Adelaide to be one of the few cities to achieve positive rental house price growth.

It also recorded the 3rd highest unit gross rental yield nationally at 5.3 per cent. And, had one of the lowest combined rental vacancy rates nationally at an astonishing 1 per cent, compared to 3.8 per cent in Sydney and 3 per cent in Melbourne.

Change In Rents + Gross Rental Yields
SOURCE: CoreLogic Hedonic Home Value Index
Adelaide Rental Vacancy Rate
  June '20 May' 20 May '19
Sydney 3.8% 3.4% 3.1%
Melbourne 3.0% 2.7% 1.9%
Brisbane 2.4% 2.1% 2.4%
Adelaide 1.0% 1.2% 1.4%
Perth 1.5% 1.8% 3.1%
Hobart 0.9% 1.3% 0.8%

RECORD BREAKING INFRASTRUCTURE INVESTMENT

Strong macro-economic drivers including a record breaking $1.2B investment into road, health, education, water and housing infrastructure projects over the next 4 years, make Adelaide a strong and sensible property investment option.

  • 7 billion on building road infrastructure
  • $1.5 billion on building health infrastructure, including the new Women’s and Children Hospital and the Queen Elizabeth Hospital Redevelopment
  • $1.3 billion on building education infrastructure, including two new birth to year 12 schools
  • $1.9 billion on building SA Water infrastructure
  • $551 million Adelaide City Deal
  • $367 million of the 10-year $554.6 million housing and homelessness strategy

Source: Infrastructure Magazine

GENEROUS COVID-19 STIMULUS PACKAGES

The South Australian Government have committed $1 Billion in Stimulus Packages to strength the economy, reduce unemployment, assist the community and support industry.

  • $650 million Jobs Rescue Package, including:
    • $300 million Business and Jobs Support Fund
    • $250 million Community and Jobs Support Fund
  • $350 million on a range of measures, including road and hospital upgrades to increased funding for the State’s Economic and Business Growth Fund to support industry sectors.

Source: Department of Treasury and Finance

UP TO $40,000 AVAILABLE FOR HOME BUYERS

The Government is offering generous home buyer and home builder grants to eligible applicants, making it even more appealing to invest in Adelaide right now.

  • $25,000 HomeBuilder Grant
  • $15,000 First Home Owner Grant

This is in addition to record-low mortgage interest rates!

Source: Premier of South Australia

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