Adelaide maintained a positive showing as 2019 came to an end, and it looks like it’s about to pick up.
“The South Australian property market appears to be steadying after a period of declines, with CoreLogic reporting that regional SA declined by 1.7% whereas Adelaide increased 0.1% in October 2019 compared to the previous quarter,” says Dennis Wong, property data research specialist at Real Estate Investar.
“This is a great market for new property investors to enter into, with positive conditions such as low vacancy rates and solid rental yields."
With the median house price hovering in the $400,000 range, investors are able to save while enjoying the strong rental market in Adelaide. The recent changes to land tax legislation, which involve decreasing the top land tax rate from 3.7% to 2.4%, are anticipated to attract investors into the market as well. Major infrastructure projects in the pipeline are helping to prop up the state’s economy, such as the construction of Adelaide’s North-South corridor to improve accessibility.
Favourable growth conditions have also been observed in the southeast region of the state.
“Values were up 1.6% over the three months ending November 2019. Considering improvements to commodity prices, the low Australian dollar and the planned infrastructure spend, we are likely to see more positive housing market conditions spread to other areas of regional South Australia,” predicts Tim Lawless, head of research at CoreLogic.
However, a rosy market doesn’t mean that investors should not remain vigilant.
“With proposed zoning changes looking to come into effect across many suburbs throughout the metropolitan area in July 2020, now could be the right time to secure an investment which could benefit from these changes,” advises National Property Buyers SA director Katherine Skinner.
“We are seeing strong growth and new price brackets becoming the norm in the North Eastern Suburbs and the Western Suburbs, where competition is fierce with buyers paying well in excess of asking prices to secure a property ... However, it continues to be a tricky time for investors, who need to be smart when assessing any potential investment property.”
Thus, investors need to stick to proven criteria like affordability, quality location and demand level when it comes to determining the best suburbs to buy in.
SUBURB TO WATCH
BLACKWOOD:
The suburb of Blackwood enjoys a favourable location in the Adelaide foothills. It is known as the home of the Blackwood Soldiers’ Memorial, which is considered a local heritage site.
The Wittunga Botanic Garden has an excellent collection of plants from across the country, as well as fl ora from South Africa. There are also various waterfalls, creeks and gullies in the area for nature lovers to enjoy.
Families can benefit from several schools in the vicinity, including St Peters Lutheran School and neighbouring Eden Hills’ Blackwood High School and Blackwood Primary School. The Blackwood railway station is a terminal for buses as well, facilitating travel to Adelaide.
Tourism: Blackwood has a local heritage site, a botanic garden and other natural attractions
Education: There are a number of primary and secondary schools in the area around Blackwood
