Historic low-interest rates and real estate affordability combined with returning South Australians are proving central factors in Adelaide’s stellar rise in property values of 7.3% over the last year, according to a leading South Australian property expert.
The South Australian capital is currently leaving Sydney (2.8%), Melbourne (1.3%) and Brisbane (5%) in its capital growth wake.
“Traditionally, many eastern state experts view Adelaide as real estate’s version of a balanced investment fund,” said James Trimble, General Manager, Raine & Horne.
“Adelaide property has historically delivered a combination of modest growth in the good times compared to the eastern state capitals. However, when those market slow, Adelaide property generally continues to deliver excellent returns to owner-occupiers and investors.”
Returning South Australians and ex-pats are a growth factor
The South Australian Government’s excellent record in managing the pandemic has encouraged more Australians recognise the southern state’s combination of lifestyle and real estate affordability benefits, thus driving growth off the charts, according to Mr Trimble.
“Population growth has been something of an Achilles heel for the Adelaide market. But with our excellent health record and the fact that more Australians have recognised they can work from home, there’s been a spike in South Australians returning to their state of origin,” said Mr Trimble.
“Currently, enquiries are up by 30% in some Adelaide markets are from interstate residents seeking to return to Adelaide, while around 400,000 Australian ex-pats have also returned home since the start of COVID. A portion of this returning diaspora is seeking to call Adelaide home.
“This is almost the equivalent of the population of Canberra returning to Australia, and they need somewhere to live.
“Throw in the acceptance of technology, the realisation you don’t have to live and work in the eastern capital cities anymore, low-interest rates plus Adelaide’s values are about 50% more affordable than Sydney, and this combination is proving the perfect mix for property price growth.”