Adelaide property market continues to thrive
The city’s property market is well positioned for future growth, offering valuable opportunities to investors across the board.
The Real Estate Buyers Agents Association of Australia (REBAA) relayed that the first half of 2024 further pronounced the “clear divergence” in the performance of Australia’s capital city markets.
Throughout this divide, dwelling price growth in Adelaide has continued to surge since the pandemic, with the city maintaining its high position among the capitals over the past six months.
REBAA South Australia state representative Jess Ellam echoed this sentiment, stating that the Adelaide property market has undergone “remarkable growth over the past 12 months”, with median prices rising by 16 per cent for houses and 15 per cent for units.
“The statistics back this up, with Domain’s latest house price report, for the June 2024 quarter, showing Adelaide’s market grew for the sixth consecutive quarter,” she explained.
Weighing in on the drivers behind this growth, Ellam attributed Adelaide’s “excellent performance” to the city’s strong population growth and investment potential.
“According to the South Australia government, the state’s population is projected to reach between 2.33 million and 2.53 million by the end of 2031. At the highest end of the projection, this would mean an average annual increase of around 1.4 per cent.”
“This increase in population has, naturally, increased demand for housing, putting upward pressure on prices,” she stated.
With the Southern Adelaide region recording a year-on-year increase in asking rents of 14.1 per cent for houses, and 6.8 per cent for units, Ellam noted that an “increase in interest from investors” had been particularly evident in Adelaide’s southern coastal and inner western suburbs.
Vacancy rates in Adelaide’s southern region have also remained below 0.6 per cent since June 2020, favourably positioning the city, compared to markets such as Sydney and Brisbane, which have vacancy rates of 1.7 per cent and 1.1 per cent respectively.
In light of the city’s tightening vacancy and growing rental rates, Ellam voiced that investors could expect “strong rental returns”.
Even with the city’s strong price growth over the past year, Ellam said that “some locations have remained affordable”, leaving room for “further growth” in Adelaide.
The South Australia representative also relayed that “several infrastructure projects are also under way”, with the Torrens to Darlington (T2D) project set to provide the final link between the city’s north to south corridor.
“There are pockets of Adelaide that offer very good opportunities for investors, whether your focus is capital growth or yield,” Ellam expressed.
“In terms of the sales market, demand is very high and stock levels are low, suggesting more price growth lies ahead. For the rental market, vacancy rates are at historically low levels, suggesting rents will also continue to grow,” she concluded.