After a 7-day lockdown here in South Australia, the Adelaide market is excited and fortunate to be able to return to action, albeit with some very reasonable and manageable restrictions in place.
The Adelaide market is still at record highs, and we expect this to continue as we move out of the recent state lockdown, but also due to the knowledge that Sydney and Melbourne’s residents continue to be restricted by COVID conditions, which we feel will see people continuing to relocate or return to Adelaide.
For the month of June, Adelaide saw dwelling values increase by 1.6% and by just under 6% for the quarter.
This equates to nearly a 15% increase over the last 12 months and in some metro areas we predict this could be as much as 20-30%, with the majority of this rise occurring in the current calendar year. In addition to this, we continue to see strong off-market sales especially in the upper end of the market.
Sales volumes across Australia have risen by over 40% in the last year, and rent values have increased by close to 7%, which is the strongest annual appreciation in rents since 2009.
With investor lending at the highest level since 2015, investors are returning to the market as the RBA maintained the cash rate at 0.1% while first home buyers are starting to move out of the market and are comprising a much smaller portion of the lending market now that new home approvals have declined on the back of the Homebuilder scheme finishing.
The typical time it is taking to sell a property has reduced substantially in the three months to June compared with the same period last year. Average days on market has now fallen from 50 days to under 30 days.
The rental market is a landlord’s market especially in metro Adelaide, with vacancy rates very very close to 0%. Days on market for rentals are slowly increasing, however, up 8% from the same time in June.
Houses and units in the greater metro area are still showing excellent rental returns with many properties being relet with an increase up to 6% in some instances, with 100-200 enquiries per property and on average 15-30 people attending showings.
Thanks for tuning into another monthly episode of market in a minute and please reach out to one of the OC team members about all things real estate in Adelaide.
Stay safe and see you next month.
If you are buying, selling, or renting, please reach out to one of the team members at OC.