Adelaide continues to defy the critics

Adelaide continues to defy the critics with Christies Beach and Port Noarlunga suburbs to watch

• The Adelaide property market recorded steady capital growth of 2.0% in the 3 months to the end of May 2017
• It recorded a 2.0% year-on-year increase in settled dwelling sales
• Hot spots Christies Beach and Port Noarlunga in Adelaide’s south are expected to produce long-term annual, average growth of 4-5%.

Adelaide, SA (14 June 2017) – Adelaide housing values have recorded a small lift over the past few months, bucking an ongoing trend to underestimate Australia’s steadiest capital city property market.

“With buyer demand continuing to respond positively to Adelaide’s housing affordability and reliability, the market recorded stable capital growth of 2.0% in the 3 months to the end of May 2017,” said Michael McDonald, General Manager, Raine & Horne SA.

“The growth result also reflects a 2.0% year-on-year increase in the number of settled dwelling sales, which is at odds with those experts citing a bleak future for Adelaide real estate.

“The negativity has been driven mostly by the Holden plant closure. However, commentators fail to see the raft of capital investment across South Australia by the government and private sectors,” said Mr McDonald.

“The decision to abolish stamp duty for commercial property on July 1, 2018, will help underpin South Australia’s business sector and help employment and population growth. More jobs and a bigger population are major ingredients in residential property growth.”

Notwithstanding the focus of the state’s economy, Adelaide’s property market has been doing a helpful job of ensuring that demand meets supply, noted Mr McDonald.

“South Australia remains very affordable for buyers, whether they are first home buyers, novice investors or experienced professionals,” he said.

“The median house price in Adelaide is $460,000 and $365,000 for apartments, which equate to a home deposit in some Sydney markets. Adelaide is very reasonably priced and this factor is at the heart of the city’s real estate appeal.”

Mr McDonald nominates affordable Christies Beach and Port Noarlunga in Adelaide’s south as locations to watch. The median house price in Christies Beach is $344,500 and it is $373,000 in Port Noarlunga.

“Christies Beach and Port Noarlunga are showing clear-cut signs of improvement with new developments and enhancements happening at a rapid rate. As a consequence, average annual growth of 4-5% is possible for both suburbs longer-term,” said Mr McDonald.

“The region has enjoyed the benefits of the Southern Expressway duplication since 2014, while the extension of the train line to Seaford has also benefited residents of Christies Beach and Port Noarlunga.”

“There is some lobbying for a boardwalk at Christies Beach and plans for higher-density accommodation, which could transform the beachside suburb further.”

The recently upgraded Colonnades Shopping Centre in Noarlunga is another tick for the area.

“The shopping centre, the railway extension and the benefits delivered by the Southern Expressway when combined with the other infrastructure plans for the region, will make these beautiful southern seaside suburbs shine,” said Mr McDonald.

For further media information contact:

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