Rough times ahead for Adelaide: BIS Shrapnel 2018
Michael CrawfordDecember 7, 2020
Residential median house prices in Adelaide are expected to increase by only 1% between June 2015 and June 2018 and units forecast to fall one percent lower, according to a new report.
The BIS Shrapnel Residential Property Prospects 2015 to 2018 report found the city is likely to be hit by an oversupply of property during the period, with median house prices to decline 7% and units 9% in real terms. The study estimated Adelaide's current median house price at $450,000, a 3% increase for 2014/15.
BIS Shrapnel senior manager and study author, Angie Zigomanis, said South australia continues to face headwinds in a number of industry sectors, and expects there will be little to place upward pressure on prices apart from low interest rates.
“The dwelling excess in the South Australian market after the post-GFC surge in construction began to be absorbed over 2012/13 and 2013/14, resulting in some improvement to prices,” Angie Zigomanis said.
“However, the excess has increased in 2014/15 as purchasers and builders have responded to large and temporary increases in incentives to first home buyers of new dwellings.
“This rise in construction is coinciding with slowing underlying demand as net overseas migration inflows ease. ”
Michael Crawford
Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.