CBD fringe and outer metropolitan suburbs expected to drive Adelaide real estate growth in 2017

CBD fringe and outer metropolitan suburbs expected to drive Adelaide real estate growth in 2017

Media Release - Thursday, 13th February 

Adelaide, SA. Suburbs on the fringes of the Adelaide CBD and the outer metropolitan area are tipped to be real estate hot spots in 2017, according to Michael McDonald, General Manager SA, Raine & Horne

“Suburbs such as Norwood, Beulah Park and Unley, which are traditionally high performers, and are likely to continue to enjoy decent capital growth this year of around 5%-6%,” said Mr McDonald.  

“We expect that properties priced below $500,000 located in Adelaide’s outer metropolitan areas, where first and second time buyers dominate, will also enjoy decent liquidity and growth in 2017.” 

Already Adelaide housing has produced some gains in 2017 due to the city’s stronger economic outlook, lower interest rates, the market’s reputation for producing consistent capital growth and competitive yields.

“With many new developments and infrastructure projects in progress, people have put behind the closures in the manufacturing sector that dominated headlines over the past few years and are recognising that Adelaide real estate is affordable and capable of producing decent income returns,” said Mr McDonald.

 

Adelaide houses are producing yields of 4% and 4.7% for apartments, according to CoreLogic. 

“In many cases, income hungry investors will realise yields of 5%, especially from properties located on Adelaide’s metropolitan fringes. Savvy investors are recognising that these returns compare very favourably with cash and fixed interest investments,” said Mr McDonald. 

“Likewise, the prospect of another official interest rate cut would help underpin market activity.” 

Despite his optimism for Adelaide’s real estate markets, Mr McDonald is urging the South Australian government to do more to help sustain longer-term capital growth.

“South Australia is a highly-taxed state and we need more rebates to create additional market liquidity,” said Mr McDonald. 

“A good start would be stamp duty rebates for empty nesters. Typically these older home owners must pay tens of thousands of dollars to downsize from their larger family homes, which they own outright.

“If we can reduce the stamp duty hit for baby boomers, they’ll be more inclined to downscale, which will free up the top end of the market and get capital flowing into the broader South Australian real estate market, including Adelaide’s inner city apartments or regional and coastal housing.”

 

–ENDS–

For further media information contact:

Michael McDonald, General Manager SA, Raine & Horne on 0488 667 710

Nic Atkinson, Communications Coordinator, Raine & Horne on 02 9258 5400

My Account Register or Sign In