COVID-19 has created a sellers’ market in the City of Churches, and it is easy for buyers to pay too much or purchase something that is not ideal.
My advice for anyone looking to invest in the Adelaide property market is to be patient.
Get your finances in order, have your pre-approval ready, and …
COVID-19 has created a sellers’ market in the City of Churches, and it is easy for buyers to pay too much or purchase something that is not ideal.
My advice for anyone looking to invest in the Adelaide property market is to be patient.
Get your finances in order, have your pre-approval ready, and keep an eye out for that perfect property - but do not rush.
Personally, I would estimate stock levels are down about 60 per cent on this time last year.
Coming into Spring, my team is usually getting email after email of new listings, but right now it is slim pickings.
A lot of properties are being sold off-market, which incidentally is one of many reasons you should consider using a buyer’s agent - we get access to many of these offerings.
There has been a lot of speculation in the media lately about potential property market drops nationally post-COVID.
Interestingly, in Adelaide, we are not seeing investor nerves.
Instead, the National Property Buyers team has noticed a significant upswing in interest from interstate and overseas investors in the past six months.
About 80 per cent of the investors we assist are from outside South Australia - mostly Sydney, Melbourne, and China - and they are attracted by the relative stability of Adelaide’s market.
We do not have the highs and lows of the eastern states but, if you invest in Adelaide, you can expect slow and steady year-on-year growth.
Our overseas and interstate clients also find that Adelaide investments do not necessarily affect their cash flow, which is an important consideration for them in an uncertain jobs market.
This is because Adelaide properties are cheaper than those in Sydney and Melbourne (our median house price is about $450,000) and our rental yields are much higher (4.5 to 5 per cent, compared to 2 to 3 per cent in the eastern states).
The difficulty for those looking to buy in Adelaide is strong competition for limited stock, especially in the below $500,000 price bracket, which is popular with investors, first homebuyers and young families.
We have seen some properties in this category sell 10 per cent above expectations in recent weeks, which might be fine if you are buying your dream family home, but is less than ideal when you’re looking for a sensible investment.
So be ready and alert to property investment opportunities in Adelaide
If your pre-approval runs out, just renew it, and stay patient, safe in the knowledge that Adelaide’s market is the turtle rather than the hare of the property race.
This makes it a winner in the long-term.
