Adelaide acquires the reputation of being one of the most stable real estate markets in Australia by 2019
Given its affordable cost and rising economy, things could be better for Adelaide.
"This is a very popular place of investors. You can buy a small cottage very well located for less than $ 750,000, which is the price that most investors tend to watch. This affordability factor makes it a destination of choice for investors, "said Nerida Conisbee, Chief Economist of REA Group.
"Affordability makes it an attractive city for people wishing to start new businesses."
The city undertakes major defense projects, which, combined with the booming submarine manufacturing sector, has helped revive the economy after the slowdown in auto manufacturing.
"[These sectors] seems to be generating a significant rental housing demand in Adelaide, which is partly due to growth in employment and affordability. [given that]
In addition to these economic stimulus factors, Herron Todd White's December 2018 monthly report highlights ongoing efforts to improve infrastructure. Some road projects whose completion is imminent are the Torrens South Road in Torrens and the Darlington Retrofit. Other work is underway to further improve road links throughout Greater Adelaide.
Coherence in a fragile market
One thing Adelaide certainly wants is her stability in the current turmoil of the domestic real estate market.
"Adelaide will not experience double-digit price growth – it's not that kind of market. But it's a stable market. If you are someone who is looking for a stable capital [growth] if you want to be able to buy a good quality home at a relatively affordable price, then Adelaide is definitely worth seeing, "says Conisbee.
According to Propertyology, some segments of the market are experiencing price growth even with slow population growth, as in the suburbs of Berri.
"Adelaide has had a tremendous year compared to the big American states and I would be surprised at not seeing solid growth of more than 5%," said Charles Tarbey, president and owner of Century 21 Australasia.
"The city seems to be well planned and there is a good balance between supply and demand that could serve the market well in the future."
SUBURB OF WATCH
SALISBURY EAST: The suburb of Adelaide in full swing
Adelaide is considered one of the most stable markets in Australia. Salisbury East, one of the city's outlying suburbs, reported slight growth in the five years to December 2018, bringing the median home and unit prices to more than $ 300,000 and $ 200,000, respectively.
These affordable values ​​arouse the interest of buyers. The houses only remained on the market 48 days a year, until October 2018, while the units took a little longer to sell, at 61 days. Rental rates also increased: the unit market registered a strong increase of 16.2%, bringing the average weekly rent to $ 430, which corresponds to the rental rate of homes. The average rental yield of the units is reasonable at 4.2%.
Affordable: Average prices for homes and dwellings are $ 309,482 and $ 215,724, respectively.
Growth: Salisbury East has seen steady growth in property values ​​over the last five years
Whether you're looking to buy your first home, move, refinance or invest in a property, a mortgage broker can help. Access loans from all major lenders, get help with paperwork – plus, this service is free. Get help from a local mortgage broker
