SA Residential Property Market Report | May 2020
Adelaides property market is seeing strong growth, and while some of that growth certainly will be stifled by the economic impacts of COVID-19, SA’s very effective response to COVID-19 will likely minimise those negative impacts.
While other capital cities continue to struggle with the impacts of COVID-19, Adelaide is emerging as a safe bet, for residential property investment, driving demand and prices with it.
Adelaide came into this year with growth momentum and that may carry it through the COVID-19 recession.
Brett Roenfeldt, president of the Real Estate Institute of SA (REISA), points to the peaking median dwelling price and the strong sales over the last quarter of 2019.
“We have another record-breaking median price at $485,000, which is a 2.11% increase from the previous quarter and a fantastic 1.73% increase from the same quarter last year,” he says in REISA’s 4th Quarter Market Update.
“The volume of sales recorded this quarter is nothing short of breathtaking and illustrates that more stock is beginning to appear on the market and that investors and buyers are entering the market and purchasing stock that is affordable and realistically priced.”
Affordability was the driving factor in the growth of quarter 4 2019, and with the current recession, affordability is expected to be even more important for the foreseeable future. With the top-performing suburbs in SA offering, both, low-priced properties, a good location and growth potential, SA is becoming very inviting for investors.
“The key drivers of purchaser spending are affordability, location and the opportunity of investment. The consistently top-performing suburbs in these lists are those that offer all three drivers,” says Roenfeldt.
Rent
CoreLogic’s Home Value Index for January 2020 shows Adelaide is amongst the most competitive capital city rental markets in the country with only 1% vacancy. This report caused the rental costs across the city to rise by 2%.
“The rent has been consistently rising in Adelaide for a while. What’s driving it is probably modest population growth – there’s been minimal construction going on, and the vacancy rate is low at 1%,” says Domain economist Trent Wiltshire.
All things considered, the South Australia property market is shaping up to be one of the most robust property markets in Australia.
Property Highlight
WINDSOR GARDENS: Affordability within the reach of CBD
Windsor Gardens is an excellent option for those seeking affordability. With the average price of houses staying strong, in spite of COVID-19, increasing in value by 1% since the outbreak began.
Location: A northeastern Adelaide suburb, Windsor Gardens is conveniently close to the CBD