Adelaide's property market could potentially benefit once uncertainties resulting from the COVID-19 outbreak dissipates.
Andrew O'Shea, project director of the Botaniq development on Adelaide's city-fringe, said the COVID-19 outbreak could cause large companies and government subsidiaries to consider decentralising and moving to smaller business hubs, like Adelaide.
"Adelaide is a much more commercially viable option for businesses due to reduced rental costs and offers an easier lifestyle for employees," he said.
O'Shea said while the commercial property segment is currently experiencing pressure due to the outbreak, Adelaide does not have the uncertainties seen in Sydney and Melbourne, where prices are skyrocketing.
"The one thing we have in our favour in Adelaide is that we don't have the spiking property increases. Such fluctuation can create uncertainty for buyers," he said.
Furthermore, O'Shea believes that once the outbreak has been contained, investors will be able to take on opportunities in the property sector, particularly in commercial properties.
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"We should see a jump in the commercial and retail valuations towards the end of the year," he said.
O'Shea said Adelaide is the ideal market for investors who have a safe approach and a long-term strategy. Adelaide currently has several developments in its inner-city and city-fringe regions that could help investors explore what the market has to offer.
"These will provide a safe and consistent rental yield as employment within the city is strong and we have a good education and health industry platform in South Australia. Such industries and city employment are fantastic at creating more and more opportunities for employment and small business that is connected to supporting this industry," he said.
Adelaide is also proving to have a resilient residential rental market. Figures from SQM Research show that over the month of March, Adelaide's vacancy rate was at 0.9%, the second lowest amongst all state capitals.
The city reported a decline in vacancy rates despite the uncertainty in the economy due to the COVID-19 outbreak.
Adelaide also recorded increases in weekly rents for both houses and units over the first three months of the year, according to separate figures from Domain.
