As the cream rises to the top, Adelaide finally passes from a capital "of the middle of the pack" to a city offering excellent prospects in the new decade.
Brett Roenfeldt, president of the Real Estate Institute of SA (REISA), points to the peak of the median house price and the strong sales of the last quarter of 2019.
"We have another record median price at $ 485,000, which is an increase of 2.11% over the previous quarter and a fantastic increase of 1.73% over the same quarter a year last, "he said in REISA's 4th quarter market update.
“The volume of sales recorded this quarter is breathtaking and illustrates that more stock is starting to appear on the market and that investors and buyers are entering the market and buying affordable stocks at a realistic price. "
Indeed, affordability has become a determining factor for many investors, especially with the high prices in cities like Sydney and Melbourne. However, SA's better-performing suburbs not only offer low-cost properties, but also a good location and good growth potential. Some of these suburbs include Norwood, Torrensville, Evanston Park and Rosewater. Morphett Vale also remained the best-selling.
"The main drivers of buyer spending are affordability, location, and the ability to invest. The best performing suburbs on these lists are the ones that offer the three drivers, ”says Roenfeldt.
Limited supply has played a role in the perception of Adelaide today. CoreLogic's January 2020 Home Value Index showed that Adelaide was one of the tightest capital city rental markets in the country, driving rents up 2% from to last year. This is one of the highest rent increases recorded by Australian capitals, just after that of Hobart.
"The rent has been going up in Adelaide for some time. What drives it is probably modest population growth – construction is underway and the vacancy rate is low at 1%, "says area economist Trent Wiltshire.
However, South African investors should not be too excited and throw all their eggs in this basket, he adds.
"There has been a smaller increase in mortgage loan commitments in South Africa since mid-2019 than in other states, indicating a more modest rebound in 2020".
SUBURB TO WATCH
WINDSOR GARDENS: Affordability within the reach of the CBD
The suburb of Windsor Gardens, northeast of Adelaide, saw its real estate market stumble during the year until February 2020, as house and unit prices were decreasing. Homes fell 2.4%, bringing the median value down to just $ 462,017. Unit prices fell 8.3% to a median below $ 250,000.
Windsor Gardens fairly close to the CBD, making it a great base for those looking for affordability. It is dominated by homeowners, which puts a solid floor under demand, and investors in units can profit well, with average rental yields of 6.1%. Schools in this area include Avenues College and St Pius X School.
Location: A northeast suburb of Adelaide, Windsor Gardens is conveniently close to the CBD
Schools: There are good options for local education, including Avenues College and St Pius X Schoo
Main suburbs:
balga
,
wiley park
,
sunshine
,
st marys
,
homebush
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