Despite a drop in sales volumes over the September 2019 quarter, Adelaide continues to be a market on the rise, showing positivity all around.
According to the CoreLogic Home Value Index for October 2019, Adelaide reported its strongest rolling quarter since December 2018 and was one of only two capitals to see a growth in rents during that period.
Knight Frank’s Australian Residential Development Review for September 2019 also noted that as 2018 closed Greater Adelaide had the most affordable lot price among the capital cities, at $176,000. Furthermore, during the 2019 financial year, sales activity dropped in the majority of states and territories – with the exception of SA, where sales volumes were fourfold at $77.6m.
While the September 2019 quarter figures from the Valuer-General don’t look as rosy, Real Estate Institute of SA president Brett Roenfeldt believes it is not something investors should be too worried about.
“The third quarter is always traditionally a slow period for sales, and these results are comparable to the same quarter in previous years,” he explains.
“This quarter is always the most difficult quarter to comment on, especially in times of low volumes of stock, and always sees a further decline in the sales volume, so this just adds a compounding effect. There is no doubt that there is far less stock at the moment, and this has been the case for some time now. ”
Roenfeldt points to record high median prices as well as consumer confidence as signs of the market’s strength.
“The great news is that the median price continues to remain high, and this is surely a sign of the underlying confidence and resilience of our property market. The figures also show that realistically and transparently priced properties continue to sell well,” he says.
“Purchasers are willing to pay a price that is affordable and realistic. SA will always be one of the best places in the world to live, work, invest and enjoy a great lifestyle.”
With a median house price of under $500,000, the suburb of Glenalta in the southern foothills of Adelaide was highlighted by the People’s Choice of Housing report (published by the People’s Choice Credit Union) as Adelaide’s “most affordable and liveable suburb”.
SUBURB TO WATCH
MOUNT BARKER: Steady as she goes
Around half an hour’s drive from the Adelaide CBD is the suburb of Mount Barker, where property values have stayed fairly consistent over the eight years to October 2019.
This suburb is quite affordable, with house prices at a median of just over $400,000 and unit values at $267,539. While unit prices did take a hit of 4.9% over the last 12 months, the suburb regained a footing in the rental market, with rental rates skyrocketing by 13.7% to a weekly average of $333, accompanied by a high average yield of 5.4%.
Mount Barker is the largest town in the Adelaide Hills and has a thriving commercial centre, including several shopping centres and restaurants.
Amenities: A large town, Mount Barker has many shopping centres and dining options
Affordability: House prices fell to a low median of just $405,848
