Cost of living and the ease of access make Adelaide an excellent long-term real estate proposition for eastern state buyers seeking an alternative to the expense and bustle of Melbourne and Sydney.
“Adelaide is such a well-planned city that it is relatively easy to commute from one side of the city to the other,” said James Trimble, General Manager SA, Raine & Horne. “Forget traffic bottlenecks, they just aren’t an issue.”
In the recent Federal Budget, $177 million was allocated to Regency Road to Pym Street as part of the North-South Corridor upgrade, $160 million for the Joy Baluch Bridge in Port Augusta and the $220 million for the Gawler Rail Line Electrification. James commented “In Adelaide, there wasn’t a lot in the Budget, but there are always piecemeal rail and road improvements underway.
“Outside Bowden on Park Terrace, for example, a rail line has been moved underground. Removing level crossings has alleviated traffic stresses.”
However, the decision by the new Liberal government to shelve an ALP election promise to significantly extend tram services was disappointing. “There doesn’t seem to be a master plan for transport," said James. “Transport improvements are a bit fragmentary and often depend on crumbs from the federal government. That said getting around town is still easy compared to Sydney and Melbourne.”
Moreover, a dollar stretches further in Adelaide, a factor that is becoming increasingly attractive to interstate workers from Sydney and Melbourne. James explained, “It’s possible to halve your rent and other outgoings by moving from Sydney to Adelaide without halving your lifestyle.”
It’s also a fallacy that Adelaide is a commercial and employment dead-end. Consulting firm Deloitte predicted that South Australia could be home to 2 million people and a thriving $134 billion economy by 2027 if several interconnecting policy ideas are enacted, along with the key goal of growing the state’s population. James said, “The Deloitte Report also stated that Adelaide is a very innovative city for tech startups. Deloitte also predicted that South Australia would be the fastest growing economy in Australia in the next financial year.”
The turnover of commercial leases and sales is another sign the local business sector is humming along nicely and creating employment opportunities, remarked James. “There’s an appetite to do business in Adelaide.”
Adelaide’s real estate affordability shouldn’t be underestimated either. The SA capital has a median dwelling price of $437,234 compared to Sydney’s median of $871,454, according to the latest CoreLogic home value index. James added, “The combination of business confidence, jobs growth, real estate affordability and a lower cost of living makes owning real estate in Adelaide a sensible proposition and will underpin steady growth.”
To illustrate the desire for property, days on market in Gilberton, an inner northern suburb of Adelaide, is just 13 days in the six months to April according to a recent realestate.com.au report. “Gilberton offers all the accessibility and desirability you’d associate with a prestige suburb such as Double Bay in Sydney, but with the inner west charm and style you’d expect from Balmain,” James concluded.