Adelaide property prices are showing no signs of slowing down, with homes in “The City of Churches” continuing to grow in value.
This shows a slight decrease in growth rate from the previous 2% uptick recorded in April, but still performing above March’s record of a 1.5% increase in prices.
Raine & Horne general manager James Trimble explained that Adelaide’s boom in property prices are primarily driven by population growth, and many Australians around the country have taken note of the lifestyle and affordability that the city offers.
“Population growth has been something of an Achilles heel for the Adelaide market, but with our excellent health record and the fact that more Australians have recognized they can work from home, there’s been a spike in South Australians returning to their state of origin,” Trimble said.
“Throw in the acceptance of technology, the realisation you don’t have to live and work in the eastern capital cities anymore, low-interest rates plus Adelaide’s values are about 50% more affordable than Sydney, and this combination is proving the perfect mix for property price growth.”
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Harris Real Estate Managing Director Phil Harris believes that Adelaide’s property market strength has low interest rates, limited stock, and high demand from local and out-of-town buyers to thank. While winter is typically a much quieter time in real estate, Harris doesn’t expect things will be slowing down any time soon.
“I definitely don’t think it will be as quiet. I think we’ll continue to see a strong market and slightly more properties (listed for sale),” Harris shared.
“It’s the strongest property market we’ve seen in a decade. People are thinking, ‘I don’t know when it’s going to stop, so I’ll take advantage of it now.”
Another factor in the demand for Adelaide homes is the city getting recognition as being one of the most livable cities in the world.
The Economist’s Global Livability Index 2021 ranked Adelaide as number three on their list, outpacing Perth (6th), Melbourne (8th), Brisbane (10th), and Sydney (11th).
According to PointData’s Lay of the Land Report for autumn 2021, their data forecasts suggest that Adelaide’s property value growth in the metropolitan area will continue in the short to medium term, while the top-performing suburbs will continue to shift over time.
The current suburbs with the highest percentage of annualised three-month growth are Exeter (45.18%), Fullarton (35.61%), Upper Sturt (32.61%), Glen Osmond (31.07%), Sellicks Beach (28.76%).
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“There’s also speculation that there might be a growing amount of interstate investment into the Adelaide market because it is performing quite well at the moment and it is quite affordable compared to trying to buy an investment property in Melbourne or Sydney,” he shared.
“The primary message coming out of the data is that Adelaide is in a great space at the moment in terms of the property market, which is quite buoyant. The activity levels are still reasonably high for those who own property, and values are strong – Adelaide is in a growth period, but it is certainly not growing at a rate that makes it unaffordable.”
Outside of Adelaide, the rest of South Australia is falling behind the national average.
Property values have increased only slightly by 0.1% in May 2021, while the national average is still going strong at 2.2%.
Words by Rimas Veselis
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