Adelaide unit market at six o'clock, with prices bottoming out

The Adelaide unit market proved fairly resilient in the second half of 2011 and ended the year down only fractionally.

WBP says median house price data indicates Adelaide unit prices appear to have bottomed out.

“Having said that demand is still soft in comparison to the first home buyer boom,” the valuer says.

Charles Tarbey and Louis Christopher offer the same comments about the Adelaide unit market as for the housing market: fairly stable, but showing signs of a pick-up in activity should confidence improve.

In a recent report, CBRE noted that the South Australian government is currently considering changing planning regulations to increase apartments heights (up to 10 storeys in some areas) to encourage apartment living in inner-suburban areas. The plans include new tram lines and cycling and pedestrian pathways, which once implemented will kick off a 30-year plan to fill unoccupied “infill” spaces close the city.

While there are a number of apartment projects under construction (such as the 108 Uno apartments on Waymouth Street), many others are all still being marketed off the plan or yet to receive development application approval. CBRE points out that a problem in Adelaide is that there are often too few pre-sales for projects to proceed to the construction phase.

Population: 1.2 million

Median unit price: $320,000

Unit price growth in February 2012: -3.1%

Annual unit price growth to December 2011: -1.1%

Annual unit price growth to July 2011: -6.8%

Rental yield: 4.8%

To find out where your capital city's house or unit market is on the property clock, download our free eBook.

Property Observer has also analysed the Adelaide house market on the property clock.

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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