Historically known as the ‘selling season’, Spring 2023 is shaping up to be a hot season for Adelaide’s Real Estate scene. While many Australian capital cities are making comebacks, Adelaide remains the true standout. The recent dip in Adelaide’s dwelling prices was a minor blip, with prices only sliding 2.4% from peak to trough. Since March, the market has surged by an impressive 3.5%. There are several key factors that contribute to Adelaide’s resilience:
Key Factors Driving Adelaide’s Property Market
Lower Stock Levels: In the South Australian suburbs, especially Marion and Glenelg (Adelaide’s southwest), a significant gap has emerged between demand and supply. Enquiries per listing have surged by 100% and 20% respectively over the year, while the number of listings has decreased by 29% and 58%. This glaring imbalance is pouring the market’s robust performance.
High Immigration Rates: Immigration policies encouraging migration to SA have steadily swelled the city’s population, fueling the demand.
Affordable Housing: While not the cheapest, Adelaide’s real estate market shines compared to neighbors like Sydney, Melbourne, and Canberra. The state Government’s commitment to investing in affordable rental properties and regional housing has further shaped the market. This charm of affordable cost of living, continues to attract more interstate buyers.
Government Policies & Infrastructure Projects: Extensive infrastructure development, including public transport and roads, has made Adelaide more appealing and livable. Projects like the AUKUS submarine plan are injecting significant investment into the area, boosting the job market and generating property demand.
First Home Buyers Advantage: If you’re a first home buyer, Adelaide presents a great opportunity to enter the property market. The First Home Owners Grant (FHOG) offers eligible individuals up to $15,000 when purchasing or constructing a new home, whether it’s a house, unit, townhouse, or apartment.
When you’re navigating the property market, it’s crucial to consider a variety of factors, like:
Spotting High-Growth Suburbs: Identifying high-growth suburbs is pivotal for successful property investments. To do so, dive into real estate data, track population growth, consider infrastructure development, watch out for signs of new houses or renovated homes.
For an in-depth look at Adelaide’s top-performing suburbs in 2023, check out our blog here
Balancing Risk and Reward: Diversify your investments, undertake thorough research, avoid “get rich quick” schemes, and manage your cash flow effectively to strike the right equilibrium between risk and reward.
Auction Clearance Rates and Days on Market: If you’re planning to sell, keeping track of auction clearance rates and days on the market can assist you in determining the best timing for selling in your particular situation. Monitoring these metrics will enable you to make well-informed decisions regarding the listing of your property and enhance your prospects for a successful outcome.
Choose the Right Real Estate Agent for Success
Selecting the right agent is pivotal to your property journey. Look for agents with local knowledge, expertise in your property type, and a solid grasp of marketing strategies. Whether you’re a buyer, seller, or investor, for expert guidance, contact us today and let us help you navigate through the vibrant Adelaide property market this spring.
