With 2022 New Year celebrations now behind us, we pick up right where we left off. The South Australian property market continues to show signs of growth in BOTH sales and prices, making our market one of the most consistent in the country.
While we begin to see other major cities’ quarterly growth rates scale down, Adelaide still stands out as an exception to this pattern, with property prices rising 7.2% in comparison to the 3.9% national average increase over the last 3 months.
Over the last month, the South Australian market saw an exceptional rise in investor participation across all states, showcasing continued strong investors’ interest in our market. Alongside South Australia’s current stock levels, strong buyer interest remains steady, with total listing levels in Adelaide down 20.2% year on year.
With the recent Reserve Bank announcement of the nation’s interest rates to remain on hold at a record low of 0.1 per cent, we expect our market to be flooded with EVEN more buyers’ demand soon.
Comparing the current Adelaide market with last year’s springtime trends, it is evident that the more affordable choices within the property market are running the show. Over the previous quarter, a home value increase of 3.7% outperformed the upper, luxury homes segment throughout the country, which displayed a lower home value increase of 2.6% by comparison.
Auctions are still enormously popular in our market. We recently had 20 auctions, and we sold ALL 20, with a property sold at West Beach for a record price of $3m. Our team’s most recent auction clearance rate stands at 93%. It goes on to show that the market is hot and filled with new eager buyers.
South Australian Holiday homes are also attracting the eye of the buyer. Our team recently sold a home in Black Point to a couple for a whopping $1.7m. Current trends continue to motivate our vendors to capitalise on the strong market and ultimately increase the value of their homes.
Looking into the rental market, our property management team have observed a 14% increase over the last month in properties leased, with homes located in prominent school zones continuing to stand out when it comes to tenant demand.
In fact, from an open inspection to a property being leased, these properties are currently leased on average 4 times faster than properties outside of high demand school zones.
Turning to the construction market, we begin to see some additional interest in coastal developments offering newly built apartments and townhouses. Simultaneously we see some of our closely watched CBD developments start to get off the ground, with plenty more in the pipeline.
Well, that’s a wrap for another ‘market in a minute’, and if you are looking to buy, sell, lease or have your property managed, reach out to one of our specialist property consultants here within the OC team.
