The remarkable steadiness for which the Adelaide market is renowned continues, with our latest survey of market activity showing that most suburbs in the South Australian capital have busy markets and rising prices.
Consistency has become the key defining feature of the Adelaide market.
Our Spring survey found that while there are relatively few suburbs classified as rising markets in Adelaide, there are large numbers of consistency suburbs – with steady sales levels over the past few years.
Overall, seven out of 10 suburbs have positive rankings – which is one of the highest in the nation.
There are three key factors which underpin ongoing demand in the Adelaide market.
One is that South Australia is one of the nation’s strongest economies and continues to thrive on the state’s innovation in the areas of technology and alternative energy, as well as being a key location for education and the Defence industry.
Another big factor is affordability. Despite recent good growth, Adelaide is considerably cheaper than Sydney, Melbourne, Brisbane or Canberra.
Homes in Adelaide are around half the price of Sydney’s.
Adelaide and Perth are the only capital cities in Australia where you can still find a good supply of houses in the $300,000s and $400,000s.
The third factor about Adelaide is the resilience and consistency of its market. In 2022, when prices generally fell in the bigger cities, Adelaide continued to deliver price growth.
And that steady performance has continued in 2023.
In the first nine months of this year, the median house price for Adelaide rose 5.3%, according to CoreLogic, while the median unit price increased 6.1%, which was above the national average.
And Adelaide continues to have one of the tightest rental markets anywhere in the nation.
The national vacancy rate, according to SQM Research, is 1.1% – but Adelaide is less than half that national average, at 0.5%.
As a result, residential rents in Adelaide have increased more than 10% in the past 12 months.
Overall, Adelaide presents as one of Australia’s strongest markets, with consistency of performance its defining characteristic.
The Top 5 Adelaide Hotspots report reveals the five top LGAs or locations in Greater Adelaide where the property market is outperforming and has all the fundamentals in place for continued strong growth.