South Australia
Two weeks into the highly anticipated spring selling season and Adelaide’s house prices continue to hit record levels, with new figures proving that there are still fewer homes on the market than this time last year and its investors plus returning ‘Adelaidean’s’ that are driving this continued growth.
SA house prices have now risen to 18% per cent over the last 12 months (with a median value of $522k), and more than 5.3% in the past quarter.
This growth is all part of a much broader national trend with other state capitals recording even bigger rises, making the past 12 months the fastest year of housing price growth since 1989.
The continuing strong demand is being fuelled by record low-interest rates, lack of supply and an influx of cashed-up SA expats all wanting to escape covid hit Sydney and Melbourne and return to Adelaide to take advantage of the easy and exceptional lifestyle we have on offer.
Off the plan, projects are receiving record registrations and demand, with our two largest projects being Market Square and Ottos Town Homes in Stepney achieving some of our highest sales rates on record.
The rental market in Adelaide is also being impacted by the housing boom with investors choosing to cash in and sell to owner-occupiers, which in turn is contributing to the reduced number of rental properties available. Although this is starting to change a little as investors begin to return to the market and make the most of attractive borrowing conditions and rising rental prices. This is particularly the case with interstate investors looking to purchase in Adelaide, so we are definitely on the other states radar.
Traditionally, the spring quarter is the time when we see the largest volume of new listings come to the market, so we are optimistic that this year will be no different and we will start to see those listing volumes increase as more vendors make the most of the key selling period and strong sale prices.
That’s a wrap for another ‘market in a minute’, and if you are looking to buy, sell, lease or have your property managed please reach out to one of the OC team.
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