Things are looking good for Adelaide as infrastructure projects and developments prop up the market
Developer activity and balanced supply and demand are two of the aspects brightening South Australia’s prospects.
“The ‘Mum and dad’ developers are very active and buying properties that can easily be split into two or buying development sites where they can build up to three or four dwellings,” explains Peter Koulizos, coordinator of the Property and Share Investment Property Services course at TAFE SA.
“This has resulted in potential development sites selling for much more than their intrinsic value, as many of these sites are being sold at auction and people are bidding with their hearts and not their heads. The Adelaide apartment market is playing catch up and currently supply is meeting demand.
The ability of demand to meet supply keeps Adelaide from suffering oversupply issues like other capital cities. Despite issues with brain drain and residents migrating out of state, ongoing projects in Adelaide are upping its stock.
“There are many cranes in the sky which is a good economic sign for South Australia. A number of new CBD hotels have already started construction with more in the pipeline,” Koulizos comments.
“The CBD is actually a hive of activity with the extension of light rail through the city and the construction of large institutional buildings."
Adelaide needs an economic boost
Ultimately, economic development is what will push Adelaide to greater heights. For Koulizos, the city is taking the right steps in that direction.
“The future is looking bright for South Australia with a burgeoning biomedical precinct and a growing defence industry. The next 10 years should see the South Australian economy perform better than the previous 10 years,” he remarks.
Adelaide’s rising prices are an excellent herald of things to come if the economy continues on this pattern.
“The median price keeps going from strength to strength. Adelaide is a magnificent place to invest due to its consistency. It is also fantastic to see that sales have picked up across all sectors of metropolitan Adelaide as well as the whole state,” says Alex Ouwens, president of the Real Estate Institute of South Australia.
“When the price is right, when investors can see a great opportunity, when infrastructure is right, the market is also right.”
SUBURB TO WATCH
GLANDORE:
Consistent growth is pushing the suburb of Glandore to new heights.
Located only 4km from the Adelaide CBD, Glandore’s proximity to the city centre is a likely factor in its recent success. In the year leading up to February 2018, house prices increased by 12.5%. Meanwhile, units are affordable at a median price of under $340,000, which could be another drawing card for buyers hoping to save.
Glandore is the midway point between the beach at Glenelg and the CBD, creating the perfect access to both sea and city living. The suburb is home to two parks, namely, Jubilee Park and Glandore Oval, while the grounds of the Glandore Community Centre serve as an additional recreation spot.
Location: Glandore is in between Glenelg, located near the shore, and the Adelaide CBD
Affordability: Units come in at a median price of less than $350,000.
