The South Australian property market maintained its long-term role as the steady ship of Australian real estate in October.
In the 12 months to 31 October 2018, Adelaide real estate produced cumulative annual growth of almost 2% and an average gross rental yield of 4.3%. Adelaide’s combined growth and income return of 6.3% leaves the South Australian capital city behind only Hobart (15.2%) and Canberra (9.0%).
James Trimble, General Manager, SA, Raine & Horne advises owner-occupiers and investors to maintain a focus on local house values and returns only. James continues, “What is happening in other states has little bearing on the Adelaide market. In Adelaide, we have a combination of decent values, clearance rates, low days-on-market, and generous yields.”
The market for family houses priced between $350,000 - $850,000 is expected to enjoy a late-year rally. “We will see activity for family houses jump in the last two weeks of November as buyers try to lock in a new home for Christmas,” notes James. “There’s only a short window to get set for Christmas.”
There’s some caution in several eastern suburb’s markets, James says. “However, listings have dropped across the city, a factor that will keep prices relatively stable as the market shifts into 2019.
On another positive note, private sector investment in residential developments and new shopping centres such as the recently launched H&M mega shop in the CBD is a strong sign that the economy is healthy. James explains, “Private sector spending is a sign there is sufficient confidence in the South Australian economy. This confidence is fantastic news for the state’s real estate markets.”