Adelaide housing market to leap ahead of apartments in 2021: Moody's Analytics

South Australia’s housing market remains relatively stable, in part because of the avoidance of excessive runup in values that occurred on the eastern seaboard, according to the latest data from Moody's Analytics.

It found house values in Greater Adelaide rose 1.9% in 2018, supported by strong growth in West and North Adelaide, whereas the increase in unit values was more moderate at 0.7%.

There is some expected divergence in South Australia house values. While house values are expected to fall by 0.5% in Greater Adelaide, they are expected to accelerate in regional South Australia and grow by 1.2% in 2019.

The growth in unit values in Greater Adelaide, however, is likely to remain steady and values are expected to rise by 0.7% in 2019, Moody's Analytics forecast.

Katrina Ell, Economist at Moody’s Analytics said: "In 2020, house values are predicted to rise by 1.4% in Greater Adelaide, supported by a strong pickup in house prices in North and South Adelaide.

"The weakness in house values in Central and West Adelaide, however, is likely to persist next year, with values projected to decline by 1.2% in both suburbs in 2020. In comparison, house values in regional South Australia are expected to record stronger growth of 2.7% in 2020, driven by a significant increase in home values in South Australia-Outback.

"In contrast, unit values in Greater Adelaide are expected to pick up modestly by 0.8% in 2020, because of weaker prices in West Adelaide, which are likely to fall further by 4.9% through 2020.

"House values are predicted to gain momentum in 2021 and increase by 5.1% and 3.9% in Greater Adelaide and regional South Australia, respectively.

"Unit values, however, are forecast to increase moderately by 1.1% in the Greater Adelaide region."