Adelaide has more growth suburbs than Sydney and Melbourne

Adelaide house prices are growing at only 4-5% annually, according to research reports, but those figures fail to do justice to the strength and resilience of the market in the South Australian capital. 

The Adelaide market is one of the steadiest in capital city Australia and contains numerous suburbs which have recorded double-digit price growth in the past 12 months.

Few of the nation’s capital cities can match Adelaide’s number of suburbs with growth markets. At the same time, the city stands out for remarkable consistency.

SA, dominated by Adelaide, has impressed with its steady sales performance in the past four years. Each of the past 15 quarters has recorded between 8,500 and 9,500 dwelling sales. And the past three quarters have each delivered between 45 and 50 Adelaide suburbs with rising sales activity.

Adelaide now ranks ahead of Sydney, Melbourne and Brisbane in terms of the number of growth suburbs. 

And while research sources such as CoreLogic and SQM Research report annual growth of only 4-5% in Adelaide house prices, these generalised figures disguise individual suburbs which have done considerably better.

Locations across a range of price sectors have recorded double-digit growth in their median house prices in the past 12 months - including North Adelaide, Walkerville, Semaphore, Prospect, Belair, Woodville South, Fullarton, Somerton Park, Gawler East, Crafers, Craigmore and Elizabeth Park.

Adelaide has a broad geographical spread of LGAs with good numbers of growth markets. There are eight municipalities which each have at least three suburbs with rising sales trajectories likely to lead to price growth.

The Marion LGA, a middle-market area in the south-west of Adelaide, has emerged in 2017 as the No.1 municipality and it now has nine suburbs with upwardly-mobile markets. 

Oaklands Park (median price $470,000) has lifted sales from 18 to 24 to 29 to 30 to 37 to 41 in the past six quarters. Other growth suburbs in the Marion LGA include Sheidow Park, Clovelly Park, Dover Gardens, Edwardstown, Glengowrie and Mitchell Park.

Another middle-market area, the Charles Sturt LGA which includes suburbs like Henley Beach and West Beach, was a previous Adelaide market leader and still have five growth suburbs. 

They include Findon, Grange and Semaphore Park. Findon sales have risen from 27 to 40 to 45 to 50 in the past four quarters.

Two affordable areas in the far north - the LGAs of Salisbury and Playford - continue to stand out, each with five growth suburbs. 

Playford, which is the fastest-growing LGA (in terms of population) in SA, offers some of the most affordable housing in capital city Australia. Its growth markets include Andrews Farm (median price $260,000), Craigmore ($285,000) and Davoren Park ($180,000).

Salisbury LGA also has several growth suburbs, including Salisbury North ($265,000) where sales have risen from 40 to 45 to 50 to 55 in recent quarters.

The Campbelltown LGA, which previously stood out for the number of suburbs with consistent sales performance, has emerged in our latest survey with five suburbs with strong growth markets, headed by Hectorville and Campbelltown. 

Elsewhere, the suburb of Gawler East has lifted sales from below 30 per quarter 18 months ago to 45-50 per quarter in 2017.  On the back of that increased activity, its median price has risen 12% in the past year to $380,000.

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

ryder@hotspotting.com.au

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