Adelaide is still the best performing property market in Australia, according to RP Data, with prices increasing by a huge 24.3% in the year to 30 September.
Price is undeniably a factor in the South Australia capital’s success – it is the most affordable market, with a median home costing just $355,908 – while the resources boom and defence spending have also had a knock-on effect.
“Interestingly, Adelaide units have performed slightly better than houses,” says Tim Lawless, director of property research – RP Data. “This has a lot to do with affordability: Adelaide prices have been the lowest of all the capitals (other than Hobart).
“People buying Adelaide properties, particularly units, have disposable income which can be allocated to their mortgage and thus can afford to pay that bit extra for the place they want.”
The RP Data-Rismark Index showed strong growth nationwide, with a 12.34% increase in property prices throughout Australia during the 12 months to 30 September. Units were up 13.7% year-on-year, compared to an 11.9% increase in house prices.
Brisbane prices enjoyed a 20% increase, compared to 17.6% in Melbourne, 15% in Darwin, 14.9% in Canberra, 6.9% in Sydney and 5.2% in Perth.
Canberra units had the highest rental yield, however – 6.2% for the three months to 31 August, compared to the lowest returns of 3.78% in Perth.
The highest rental yields for houses came from Darwin with 5.38% during the same period, while Perth was the lowest once again, with 3.39%.
The affordability factor continues to pose a problem, with Sydney remaining the most expensive place to buy with a median house value of $513,149. This was followed by Canberra ($488,112), Brisbane ($431,422), Melbourne ($425,079), Darwin ($387,370) and Adelaide ($375,735).
With an average of $449,701, Perth has the most expensive units, however, followed by Sydney ($416,280), Melbourne ($343,103), Darwin ($323,481), Canberra ($317,279), Brisbane ($312,803) and Adelaide ($290,951).
