While much of the mainstream media commentary on the property market focuses on the highs and lows of the big capital cities, it was Australia’s smaller capital cities which shone in 2022 – and they continue to do so in 2023.
Adelaide, in particular, is one of those shining stars.
Overall, Adelaide is a story of continuing high sales activity and on-going price growth, remaining generally one of the strongest markets in the country.
Indeed, the 2023 edition of the Rising Stars report which I published recently in collaboration with the comparison website Canstar, ranked Adelaide the No.1 market in the nation.
The Rising Stars report used a series of forward-looking indicators to rank the 14 major market jurisdictions of Australia (8 capital cities and 6 state regional markets) on their prospects for growth in 2023.
Adelaide topped the national rankings based on our analysis of sales volumes, vacancies, rents, price patterns and infrastructure spending.
Our latest analysis of sales volumes across Australia shows that Adelaide has a large number of suburbs with rising sales activity and there is no evidence that it will experience a downturn anytime soon – in contrast to media rhetoric about markets declining everywhere.
A few years ago, commentators discounted the Adelaide economy and its property market, because they thought it couldn’t survive the shutdown of its car manufacturing industry.
They were wrong. It caused barely a blip and Adelaide has done very well since then, as it has evolved from the old economy to the new.
Most of those former manufacturing premises have been repurposed and Adelaide has created a vibrant modern economy – including its status as the high-tech innovation capital of Australia.
It is, in effect, the Silicon Valley of Australia, with numerous national and international businesses establishing their national headquarters in Adelaide.
South Australia is the national leader on alternative energy development and Adelaide is one of the nation’s leading cities in the education and defence industries.
Against that background, Adelaide’s property market has plenty going for it.
- It has experienced a couple of years of high price growth, but remains very affordable compared to the bigger capital cities.
- The rental yields are good and rents are rising strongly, underpinned by very low vacancy rates.
- Vacancies are low elsewhere in Australia, but there is nowhere as low as Adelaide, which is almost at rock bottom with a vacancy rate of just 0.4%.
- There is not a single postcode within Adelaide where the vacancy rate is as high as 1%.
Adelaide is a city offering great value for money, rising rents and high rental yields, underpinned by a vibrant local economy.
So, next time you read in our shallow and sensationalist media that markets are falling across Australia, be aware that this certainly does not apply to the South Australian capital.
Grab yourslef a copy of our latest Top 5 Adelaide Hotspots report and explore this vibrant market.