A year on, Adelaide property clock still stuck in decline: Herron Todd White

The Adelaide property market still has further to fall before it hits rock bottom, according to valuation firm Herron Todd White (HTW) in its latest property market round-up.

Looking at the Adelaide market over August, HTW valuers say the volume of both home and unit sales are declining while demand for new housing remains soft.

The latest report notes that new Adelaide houses and units are “almost never” sold at prices exceeding their potential resale value.

And the outlook for Adelaide remains on the gloomy side.

“The Adelaide property market in the short term continues to be flat and limited growth is expected in the next 24 months,” says HTW in its latest report.

Despite reporting that capital values are still declining, the situation is not all bleak for property investors, with HTW reporting that it remains a balanced rental market for both houses and units, with the vacancy rate steady in the case of houses and “stable” for units.

Adelaide Hobart and Canberra are the only three capital city property markets still in a downswing.

According to HTW, the Adelaide market has been in decline for the past year.

In its September 2011 report (for the month August) HTW said Adelaide was a declining housing market although at the time it said there was “fair” demand for both new houses and units.

“Although there has been a slight decline in house prices since 2010, investors have also been cautious about entering the market due to the speculation that interest rates were due for an increase, especially on the back of inflation figures,” said HTW back in September 2011.