Welcome to our final “Market in a Minute” for 2021 … and what an amazingly strong year it has been in real estate!
Back in February, we reported that we were faced with the perfect trifecta – low-interest rates, government stimulus, and ex-pats moving back to SA, on the back of the global pandemic. And it sure was the perfect storm for property price growth.
These price growth drivers expanded throughout the year with increased savings, equity, and in June, Adelaide was announced the 3rd most liveable city in the world, and 1st in Australia.
The first quarter of the year saw First Home Buyers and Investors active in the market. Then very quickly cashed-up ex-pats helped catapult the top end of the market, with more properties in SA selling over $2 million than ever before. Now we are seeing $2m become the new norm in many areas of the market.
By the middle of the year, frustrated First Home Buyers began to withdraw from the market due to continually missing out, and investors taking their place.
Then in September, we started to see investors selling up to owner-occupiers, adding to pressure on the rental market. And by October we observed increased activity by local upgraders in the top end of the market, with price value growth in the top 25% of home values outperforming other markets across Adelaide.
So where do we stand now at the end of the year?
The most recent CoreLogic report shows Adelaide values are still continuing to rise. And while much of the country’s capitals are experiencing softer growth conditions, Adelaide is yet to experience a slowdown, with values up 2.5% in the month of November, and the highest since February 1993.
Over the past quarter, Adelaide price growth is up 6.5% compared to the national average of 4.4%, and we close out the year with more than 21% annual price growth.
This year as a company OC has sold more than 900 properties, close to $800million dollars worth of property, at an average of $885,000. The highest sale price was $7 million, and we sold 8 properties over $3 million, 40 properties over $2 million, and more than 250 properties above $1million. We held over 1600 open inspections and 445 auctions, across 5 offices, thanks to our brilliant sales team.
Our projects team launched Adelaide’s most exciting and fastest selling apartment development Market Square, above the Adelaide Central Markets, along with several other fast-selling developments across Adelaide. A great effort by our team.
Our property management team have done a great job managing more than 1650 properties. The highest rent this year is $1,600 per week, and the average rent is $470 per week. The team leased approx. 600 new properties over the year, processed more than 6,000 applications and conducted over 1,300 open inspections. The most popular suburb of the year to rent has been the city of Adelaide, followed by Bowden. And that’s all thanks to hard-working property management team.
If you need to prepare for your next property move in 2022, read our latest blog for helpful advice – click here.
Well, that’s a wrap for 2021!
From all of us here at Ouwens Casserly, we wish you and your family a merry, safe and happy festive season.
Look forward to seeing you again in 2022, for another episode of Market in a Minute.