Adelaide housing market maintains steady activity: WBP

Adelaide housing market maintains steady activity: WBP
Adelaide housing market maintains steady activity: WBP

Adelaide’s housing market has recorded moderate to steady activity over the recent quarter, reflective of ongoing transition and consolidation of the South Australian economy, according to WBP Property Group’s latest report.

CoreLogic reports a modest 0.4% increase in house prices from the June quarter, while the REISA reports more buoyant growth of 2.27% in the median house price over the June 2016 quarter.

While figures differ in the short-term, annual median values are consistent between sources with both reporting growth of around 5% during the last 12 months.

Transaction volumes were marginally down on the previous quarter, a solid outcome due to the seasonal influences of a particularly cold and wet South Australian winter and general uncertainty surrounding the federal election in July, the report noted.

Rents incurred an overall decrease of 1.5%, likely the result of labour force pressures, specifically static growth in wages, and an oversupply of housing on the outer metropolitan fringe.

The Adelaide market has been buoyed by investor activity over the past year, with mortgage indicators reporting a rise in new mortgages to investors.

It is evident interstate buyers, particularly from the eastern seaboard, are turning to Adelaide as an affordable way to growth their property portfolios.

The South Australian market also continues to appeal to a number of international buyers due to stability in stamp duty costs for foreign buyers, in contrast to its eastern seaboard counterparts that have increased these costs to the buyer segment.

Adelaide is experiencing a trending shift towards inner-city living, predominantly due to major infrastructure development completed or underway along the CBD’s Riverbank precinct.

The social shift continues to spur new supply of apartments in the CBD and increasing demand for housing in established inner suburbs.

Adelaide has seen an increase in the top end market with 13 suburbs now listing median house prices over $1 million.

With a large supply of outer suburban land on offer in recent years, there has been a recent state initiative to decrease Adelaide’s urban footprint and focus on increasing infill and subdivision within existing city areas.

Recent development policy and zoning changes, particularly through former industrial regions through the inner west, should see an increase of housing in the near future.

The developments at Bowden, St Clair and the Churchill Road precincts are recent examples of a state-wide infill focus.

“In the short-term, WBP Property Group expects a spring time spike in coming weeks with further sales activity and competition expected for the Adelaide market. With interest rates at record lows, thereby reducing the cost of borrowing, its expected affordable properties supported by sound and readily accessible infrastructure while attract strong interest,” the report stated.

Adelaide Wbp Property Group


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