Well, it’s been a bumper Spring across Adelaide, rounding out the season with a 5.9% rise in dwelling values over the past quarter, compared to a 4.6% increase nationally.
As we observed last month, the upper end of the market is leading our growth. Luxury homes continue to outperform other markets across Adelaide as well as the rest of Australia. The trend continued with the top 25% of values across Adelaide rising 6.6%, compared to 4.5% across the lowest 25% of values over the past 3 months. This is largely driven by low-interest rates and high saving levels, enabling people to move into that next price bracket.
New listings trended higher through October as we saw a seasonal uplift with Spring, and we saw many investors ‘cashing out’ of the market. We do expect to see the volume of properties coming onto the market tapering off now ahead of the Christmas period, with many homeowners starting to look towards 2022 for their purchase.
On the rental market, we have seen rental values across Australia increase by 9.2%. This is the strongest annual appreciation in rents since February 2008, with Adelaide increasing 8.6% in the past 12 months.
Family homes priced between $400 & $650 per week have been in high demand. In particular, updated properties that are well-looked after and accept pets. Our Property Management team have been showing between 30 to 60 groups through these types of homes at most inspections.
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The construction market in Adelaide has recently emerged from a boom where activity has been skewed towards the high-rise apartment sector. A large proportion of these newly built apartments are centred around the city, which has increased supply and kept rental prices stable in the Adelaide CBD. This means there is an abundance of city dwellings available to lease.
If you’re a landlord of an inner-city unit, the great news for you too is that rental demand for these tenancies is likely to increase as restrictions ease and international borders open more fully to foreign students and international visitors.
Our executive portfolio is starting to lessen gradually with this group possibly becoming more settled in a recent purchase. That said, we are seeing increased interest in the lower end of the market, with properties under $300 per week also now proving to be very popular.
That’s a wrap for another Market in a Minute. Keep an eye out for next month’s final edition for the year, and remember if you are looking to buy, sell, rent or develop please reach out to one of our team.
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