The competition is starting to heat up in Adelaide as the COVID-19 restrictions get lifted, according to an expert.
Katherine Skinner, South Australian director at National Property Buyers, said Adelaide could be witnessing competition due to several factors.
"There is a critical shortage of stock across all markets and areas. Combine this with such low interest rates, and there is significant competition for homes that would normally not see such levels in normal circumstances," she told Your Investment Property.
Figures from CoreLogic show that the median value of homes in Adelaide grew by 0.4% in May, defying the overall downturn. It is one of the three capital cities that registered an increase in median house prices in the month.
Skinner said during the second half of May, interest from investors in eastern states increased. However, they are facing increased competition as owner-occupier sentiments also improve.
"This is ensuring the market remain buoyant with many first-home buyers looking to break into the market, as well as owner-occupiers, which are making things more challenging for investors looking to find quality stock," she said.
Richard Sheppard, chief property investment advisor at inSynergy, said Adelaide is well-positioned to weather the risks of the COVID-19 outbreak on the housing market.
"The fundamentals are very strong for the medium- to long-term in certain Brisbane, Canberra and Adelaide sub-markets. We also believe the risk of COVID-19 pushing these markets backwards is quite low," he said.
