According to CoreLogic’s hedonic home value index Adelaide’s dwelling values increased between April and June by almost 1%, the second highest increase for the quarter behind Hobart (2.3%). In comparison, Brisbane (0.3%) and Canberra (0.2%) were the next best.
James Trimble, General Manager, SA, Raine & Horne commented that the quarterly result demonstrated the resilience of the Adelaide market. He added, “This market doesn’t suffer the peaks and troughs that we see around the rest of the country. It’s is a very stable property market, which makes Adelaide attractive place to invest and live in equal measure.”
With a median dwelling price of $439,000, Adelaide is half the price of Sydney, while its investment yields of 4.2% are significantly higher than the major east coast capitals, James noted. “Moreover, investors can achieve excellent yields in Adelaide as long as they employ the right property manager such as Raine & Horne.
“A healthy yield is dependent on the quality of the property manager you employ. If your property sits vacant for a period, this situation can eliminate your yield totally.”
Looking ahead, James said the traditional spring selling market is shaping up well. “We’re just back from school holidays in South Australia, and we’re starting to see more interest in real estate. It’s always steady as she goes, however, there’s also no denying there is an appetite for buying property.”
In the prime inner suburbs of Adelaide, there is shortage of stock on the market, which also bodes well for spring, James confirmed.