Adelaide is a city designed for life; one that proudly gives its residents the freedom of time and choice to create their unique stories through community, cultural and wellbeing experiences.
Residents enjoy a quality of life where happiness and health intersect, plus one of the most affordable capital city housing markets in Australia. In October 2018, the ANZ/Property Council Survey reported South Australia as the only state to record an increase in the expected rate of house price growth in the coming 12 months with COMMSEC chief economist Craig James recently highlighting Adelaide’s housing market stability in comparison to the eastern seaboard. Independent valuer and Adviser m3property research manager, Zoe Haskett, revealed the CBD is currently a buyer’s market, making conditions ideal to make the move to the city or invest in residential property. Affordability is further enhanced with the City of Adelaide’s Free Rates for Five Years owner-occupier rebate.
Meet the community and find out more about what makes city living so unique at cityofadelaide.com.au/cityliving
Median house prices remain far more affordable than eastern seaboard states
Article by Richard Evans, originally seen in The Advertiser April 8, 2019 5:01pm - Licensed by Copyright Agency. You must not copy this work without permission.
ADELAIDE continues to benefit from a consistent residential market with stable price levels being maintained despite price corrections occurring within other parts of Australia says a SA property leader.
While Adelaide hasn’t witnessed the strong price gains in recent years, it is unlikely to experience strong falls either says Kym Dreyer from independent valuer and Adviser m3property.
The stable and predictable market now offers an opportunity to local and interstate purchasers and investors he said following the release of the company’s national, residential development commentary 2019. As a result of the massive population surge across Melbourne, Sydney, and to a lesser degree Brisbane, activity across the residential market had not been as intense in the Adelaide and the broader South Australian market Mr Dreyer said.
``Population growth has been the key to the exceptional growth in residential markets across the eastern seaboard but in Adelaide that growth has been modest at best. In fact if anything, population growth in SA is slowing with losses in net interstate migration still a major challenge and which has limited the potential for solid gains in demand for housing.”
While affordability declined last year - mainly due to house price growth outpacing wages growth - median house prices remain far more affordable than eastern seaboard states Mr Dreyer said.
m3 research manager, Zoe Haskett, said that with residential vacancy in the Adelaide CBD now above 3 per cent the market is in potential oversupply, and with a further circa 1200 apartments currently under construction, the CBD is now a buyer’s market. Tightening in lending conditions, an increase in the foreign investor surcharge and slowing population growth could combine to limit any price growth in the short to medium term.
``With a significant softening in demand from both local and foreign investors and a preference from owner-occupiers for small scale buildings, the next five years is going to be more about boutique style developments rather than large scale generic developments,’’ Ms Haskett said.
She said a boutique-style development trend would be readily taken up by developers with less onerous finance and capital requirements, lower project risk, shorter construction time frames, reduced holding costs, and potentially quicker pre-sale periods making it easier to meet pre-sale targets to cover debt financing.
Ms Haskett said new projects will continue to occur across infill sites focused within the inner suburban areas with the majority of Adelaide’s new residential supply now occurring within established suburbs.