The City of Churches was the sole capital city to record positive growth in the month of May
After years spent in the middle of the pack, Adelaide is now in the spotlight. CoreLogic’s Home Value Index for May 2019 reported that it was the only capital city in Australia to record positive growth over that month, while its peers were caught up in the national downswing.
The conclusion of the federal election has also helped add stability to the market and increase confidence.
“We have seen a variety of outcomes and announcements that are likely to have a positive effect on housing market conditions,” says Tim Lawless, head of research at CoreLogic.
“We now have some certainty around the initiatives announced in the federal budget, a consistent commission structure for mortgage brokers, who comprise around 60% of mortgage originations, and the eventual stimulus for first home buyers in the form of a federal government deposit guarantee.”
The affordable quartile of Adelaide saw prices increase by 0.9% – the highest since May 2018. The middle of the market experienced 0.3% growth as well; however, the expensive quarter recorded a sharp 2.7% drop in housing values. The city’s housing affordability also increased in the March 2019 quarter, with the proportion of income required to make loan repayments each month falling by 0.3 percentage points to 26.9% compared to the previous year.
Meanwhile, the March 2019 Housing Affordability Report published jointly by the Real Estate Institute of Australia and Adelaide Bank pointed out that in the same period rental affordability declined slightly – the proportion of income needed to pay the average monthly rent increased by 0.4% over the previous year to 22.8%.
Along with the decline in Hobart, this negatively impacted the national rental affordability rate.
The number of loans made to first home buyers went up by 5.6% over the year to a total of 1,370, signifying a boost in activity in this sector. In fact, first home buyers in this state comprise 5.9% of national first home buyers.
Adelaide’s consistency, generally one of its strong suits, was still on display as the average time on market saw no significant change over a 12-month period, according to CoreLogic. In April 2018, properties in Adelaide took an average of 45 days to sell; a year later, they are spending 54 days on the market.
SUBURB TO WATCH
PLYMPTON:
In the 12 months to June 2019, house prices began to slip in the suburb of Plympton. Following a trend of positive growth in the past fi ve years, house values dropped by 4.5% to a median of $569,127. Units, on the other hand, continued their downward trajectory as prices fell by 8.5% in the same period to a median of $258,335.
Located in the southwest part of Adelaide, Plympton was named after an area of Devon in England. It is connected to Anzac Highway, and the remains of the Holdfast Bay railway line border this suburb in the east. It is a family-friendly suburb that offers proximity to both the city and the beach.
Affordability: Units in Plympton are priced at a median of just over $250,000
Accessibility: Plympton is linked to the Anzac Highway and is close to both the city and beach
