Adelaide the best performing capital for real estate growth suburbs: Hotspotting's Terry Ryder

Adelaide the best performing capital for real estate growth suburbs: Hotspotting's Terry Ryder
Adelaide the best performing capital for real estate growth suburbs: Hotspotting's Terry Ryder

EXPERT OBSERVER

Adelaide is the standout market in capital city Australia. Its consistency of sales performance is remarkable and two-thirds of its suburbs have had price growth in the past year, led by double-digit rises in top-end markets.

Adelaide is undoubtedly Australia’s most under-rated market. I have often lauded Canberra as the most consistent of the capital cities but Adelaide is a serious challenger. It keeps delivering good sales activity and above-average results on house prices in specific markets.

In the five years Hotspotting has been conducting quarterly surveys of sales activity and price trends, Adelaide has never delivered a poor result. Most cities have had peaks and/or troughs in that time, but Adelaide just keeps on producing steady markets with consistent demand. 

65% of Adelaide suburbs have experienced growth in their median house prices in the past 12 months, many of them with rises above 5%. 

The list of suburbs with growth above 10% is dominated by top-end locations, a positive sign for the market overall, which we believe is poised for a significant growth phase.

Our Spring survey has identified 61 Adelaide suburbs with rising sales momentum. Over the past two years, the number of growth suburbs quarter-by-quarter has been 45, 58, 61, 71, 60, 62, 64 and 61.

Adelaide continues to rank well ahead of Sydney, Melbourne and Brisbane in terms of the number of growth suburbs – and ahead of most state regional jurisdictions (where many of the strong growth markets are found at present).

There are 11 Local Government Areas across the metropolitan area with three or more suburbs with upwardly-mobile markets.

The Marion LGA, a middle-market area in the south-west of Adelaide which has been a market leader for the past 18 months, is once again a standout market – indeed one that ranks nationally. It has nine suburbs with rising sales patterns, including Ascot Park, Glengowrie, Hallett Cove, Marion, O’Halloran Hill, Sheidow Park and Seacombe Gardens. 

Port Adelaide Enfield, another precinct that regularly features, also has nine growth suburbs including Croydon Park, Clearview, Dernancourt, Ferryden Park, Greenacres, North Haven and Rosewater.

The Charles Sturt LGA, which extends north-west from central Adelaide out to the beach areas, is close behind with seven rising suburbs. 

Eight municipalities have between three and five rising markets each: the Burnside, Campbelltown, Holdfast Bay, Mitcham, Onkaparinga, Salisbury, Tea Tree Gully and West Torrens LGAs.

While sources such as CoreLogic and SQM Research report annual growth of only 1-2% in Adelaide house prices, these generalised figures disguise individual areas which have done better. Our suburb-by-suburb analysis shows that 65% of Adelaide suburbs have median house prices higher than a year ago. Of the 123 suburbs which have recorded price growth, 51 have lifted more than 5%.

Only 23 of the 188 suburbs in the Adelaide metropolitan area have recorded falls in their median house prices of more than 5%.

Many of the suburbs with the highest annual growth are towards the upper end of the Adelaide market, headed by North Adelaide (up 35% to $1,165,000), Glenunga (up 21% to $1,185,000) and Unley (up 17% to $1,075,000). 

Terry Ryder is the founder of hotspotting.com.au

[email protected]

twitter.com/hotspotting

Terry Ryder

Terry Ryder

Terry Ryder is the founder of hotspotting.com.au.

Tags: 
Terry Ryder Adelaide

Comments

Be the first one to comment on this article
What would you like to say about this project?