Positive vibes abound in the City of Churches as Adelaide steps out from the middle of the pack
Adelaide is finally on track after a number of years in the middle of the pack, when it struggled to recover from economic blows after the loss of the car manufacturing industry.
According to CoreLogic’s Home Value Index, annual property values have fallen in all capital cities with the exception of three – Hobart, Canberra and Adelaide. This is an excellent sign of where Adelaide is heading in the near future, with its best-performing pockets in the Central, Hills and North regions.
Affordability is a big part of the city’s recent growth spurt as its prices near those of Hobart’s. In fact, first home buyers in South Australia were the most active in the country in the first quarter of 2019, according to the NAB Residential Property Survey. Over 50% of new housing market sales were made to such buyers, and the low prices would likely have contributed to this activity.
Slow and steady path uphill This doesn’t necessarily mean that Adelaide will skyrocket in the same way Hobart has done. But Adelaide has long been known for its consistency as a market.
Based on survey findings showing that Adelaide’s price growth forecast was the strongest for a mainland capital city, acting NAB SA general manager Libby Greenwood says, “[This] reaffirms Adelaide’s reputation as a ‘no frills’ property market with buyers able to take confidence in its consistency.”
Despite high market confidence and the rosy growth forecast, South Australia’s suburbs are not expected to hit aboveaverage growth levels in the next 12 months. Nonetheless, they show the type of growth that can be sustained over the long term.
“The continuing rise in the median price through every quarter in the last few years is a testament to the underlying strength and resilience of the Adelaide real estate market,” says Brett Roenfeldt, president of the Real Estate Institute of South Australia.
“It also clearly shows that the median price is sustainable and should continue growing in the future.”
Some of the notable growth suburbs over the 12 months to March 2019 were Gulfview Heights, Somerton Park and Noarlunga Downs. Meanwhile, the top sellers in the March 2019 quarter were Morphett Vale, Hallett Cove and Aldinga Beach.
SUBURB TO WATCH
FULLARTON:
The unit market is taking the spotlight in Fullarton, one of the eastern suburbs of Unley City, just 3km from the Adelaide CBD.
Unit prices increased by 3.4% in the year to April 2019, pushing the median value up past the $400,000 mark. This continues the positive trend the suburb has sustained over the last fi ve years. Weekly rental rates also soared to an average of $360 – a boost of 9.1% in the 12 months to January 2019.
Rental returns are reasonably high at 4.6%.
On the flip side, house values fell by 7.9% in the same period, to a median of $885,403. Rental rates also declined by 6.2% to $530 a week.
Location: Fullarton is conveniently situated just 3km from the Adelaide CBD
Growth: The unit market shows long-term growth potential, after positive growth over several years
