3 Adelaide markets to keep an eye on in 2022
South Australia’s rebranding campaign and pandemic-induced restrictions in major cities have benefited the Adelaide property market in ways it never thought could happen – a net positive migration for the first time in 30 years that could translate to a bigger pool of buyers.
In its February Month in Review, Herron Todd White (HTW) reported that at the present time, properties are spending historically low days on market. It’s just one indicator of the marketplace’s current success.
Reflecting on the back of a strong property market in 2021, HTW Adelaide director Nick Smerdon said: “With all things being equal, the current upwards cycle is expected to continue into 2022.”
Mr Smerdon has identified three residential market segments with purchase prices being achieved within and above asking price ranges in Adelaide: the outer ring, the prestige market, and the CBD apartment market.
Given the steady growth of these segments, Mr Smerdon stood firm on his belief that the “South Australian residential property market is trending on an upwards cycle”.
Even if leading indicators do change, he suggested the stability of the market should provide participants comfort that any disruptions should be felt with a stabilising of the growth pattern or a gentle downwards cycle.
1. Outer ring
Adelaide’s outer ring has been the hub of transactions over the past 12 months. Housing affordability attracted first home buyers, while strong rental returns in the metropolitan area drew investors to the market.
According to Mr Smerdon, house price points in this location range from $130,000 to $550,000, with properties in the outer northern suburbs commanding a lower price than those in the outer southern areas.
Suburbs worth noting are Sellicks Beach, Salisbury North, and Davoren Park.
2. Prestige market
Low-interest rates have bolstered demand for housing in Adelaide’s prestige market, Mr Smerdon reported.
“This market performed strongly in 2021 with a record number of $2 million plus transactions,” he claimed.
Buyer interest did not wane, he added, as interstate and international expats wishing to return to South Australia have been inquiring about the city’s affluent enclaves, keeping agents on their toes.
Tennyson ($1,382,500), Unley Park ($2.3 million), and Toorak Gardens ($1.74 million) are among the suburbs with median price ranges that stretch into the premium price category.
3. CBD apartment market
Despite experiencing a temporary slump in market activity due to pandemic restrictions, Mr Smerdon purported a positive forecast for the CBD apartment market in Adelaide as national and international borders reopen.
As of February, HTW has reported rental vacancy tightening due to a shortage of available property relative to demand.
Prices in this market range from $200,000 to $2 million or more, with typical transactions hovering between $300,000 and $600,000.
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