It’s been almost three years since the last property boom in Adelaide and the market is still on the upswing. The median house price rose by 2.9% over the past twelve months, according to CoreLogic. This marks the sixth consecutive quarter of growth and puts the city in a very promising position for further capital gains in the near future.
The rate of growth has been gradual but steady with the Adelaide housing market rising year-on-year since March 2019. The median house price has grown from an average of $440,900 to $455,000, indicating strong demand from buyers.
The Adelaide market is particularly attractive to investors due to its affordability compared with other major cities. As such, the investor share of purchases is much higher than the state average, currently standing at 46.4%.
This high investor interest is also driving strong rental yields, as landlords benefit from low vacancy rates and rising rents. The gross rental yield for a house in Adelaide is currently 5.3%, while units are producing an even higher yield of 6.3%.
Buyer activity is quite strong across the suburbs. Demand appears to be highest in the inner city suburbs of Wayville, Norwood, and Prospect, where there have been record highs in sales volumes this month. Areas around the beach in Henley, Glenelg and Semaphore have also seen very strong activity in recent weeks.
A similar trend can be seen in the unit market, with multiple offers and bidding war common occurrences in many inner-suburbs.
Looking ahead, CoreLogic predicts that Adelaide’s housing market will continue to strengthen over the coming months as more people look to take advantage of the market conditions. Low interest rates, rising wages, and increasing population growth all help support the city’s real estate market.
Overall, the Adelaide housing market looks set to continue its steady growth, making it an attractive option for both investors and owner-occupiers.
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