2019 will be remembered as a year divided into three parts, yet the Adelaide real estate market enters 2020 on a sound footing, according to James Trimble, General Manager Raine & Horne.
“The year can be divided into the pre-election period up to 10 April, the month of the campaign, and then the post-election period following the 16 May polling day,” says James. “With the announcement of the election, many buyers and sellers took their feet off the gas and settled in to await the result.”
As soon as the surprise Federal Election result was confirmed, the Reserve Bank swiftly cut rates and APRA eased up on its stringent lending caps on the banks. James notes, “Also, many people returned to the market appreciating there would be no changes to the taxation of investment properties, which caused plenty of angst in the leading up to the election.
“The rebound in the Adelaide market perhaps hasn’t been as swift as Sydney and Melbourne, but our Raine & Horne offices in Adelaide are set for record sales in the fourth quarter of 2019,” James enthused. “October was a massive month for transactions, and this fantastic result has set the Adelaide market for a very robust 2020.”
Improved buyer conviction has translated to vendor confidence demonstrated by a substantial lift in listings numbers. “The number of properties for sale in Adelaide is up by 5% compared to the end of December 2018, James advises. “The liquidity in the market is fantastic, and well-presented properties are attracting plenty of buyer interest.”
Developers buoyed by general real estate market confidence increasingly identified with Adelaide’s long-term property market potential. “Adelaide has a new tallest building, the Adelaidean on Frome Street,” reveals James. “The 36-floor tower stands at 135 metres and will include a Crowne Plaza Hotel as well as premium prestige apartments.
“This tower will be completed in March 2020, and already there are plans for an even taller building.”
Apart from new apartment towers, the state government is investing in new schools, while more than $328 million in federal funding across six major infrastructure projects was announced in November.
“Attracting more people is a major imperative for the SA Government,” considers James. “To become a global city by 2045, we need to have net migration.
“However, our biggest challenge to population growth is keeping talented Millennials in Adelaide rather than losing them to Melbourne and Sydney.”
James is adamant the world-leading neighbourhood of Lot Fourteen, which is being built on the site of the former Royal Adelaide Hospital, is critical to retaining and attracting talent. “The hospital site is being transformed into Australia’s first innovation neighbourhood, where thousands of people will work, study and visit,” he says. “Businesses operating from Lot Fourteen will help stem the talent exodus to the eastern states and give Younger South Australians a reason to stay in Adelaide, spend money and buy real estate.”
Away from the city, CoreLogic reports that regional South Australian markets enjoyed a positive 2019. “More buyers are recognising markets beyond the Adelaide Hills offer great value for money,” explains James. “$500,000 buys a lot of property beyond the Hills, and with the rollout of the NBN, more SME owners and employees don’t need to be in the CBD for work. They can now operate efficiently from a spare room in McLaren Vale or Victor Harbor three days a week.”