Well-performing suburbs in specific areas keep Adelaide steady, despite limited upside and a weak economy
For Adelaide, no news is good news as it continues to truck on in the middle of the pack, relative to property markets nationwide. According to CoreLogic, transaction volumes have remained generally stable.
“Adelaide is OK – I think in terms of demand it’s not as bad as Perth or Darwin, but it’s not as good as, say, Queensland,” says Nerida Conisbee, chief economist at REA Group.
Certain parts of the metro are performing well, like Adelaide Hills and the suburbs in the inner-urban areas, indicating that select spots have potential for growth.
“It’s a market that has pockets of very high demand. It’s not a growth economy historically – population growth isn’t strong. You’re not going to get the same levels of capital growth as Melbourne and Sydney have experienced over the last few years, but there are some areas that people do seem to want to be in and that seem to be seeing quite good price growth,” Conisbee explains.
Nonetheless, economic issues continue to plague the state. While the submarine project won by Adelaide could generate employment opportunities, Philippe Brach, CEO of Multifocus Properties & Finance, believes the number of jobs created will not change the game for Adelaide.
“They’re losing a lot more jobs in the manufacturing industry than they’re gaining. It’s one of those areas where there’s nothing much happening, so it’s just bumping along. The upside is fairly limited when you compare that to the eastern seaboard, that is, Melbourne, Sydney, Brisbane,” he says.
Investor demand goes up
Given Adelaide’s affordability, demand from investors has been picking up throughout the city.
“The house price increases on the eastern seaboard have seen Adelaide come to the fore as an alternative property investment location,” says Gregg Harris, general manager of NAB Retail.
“It is becoming increasingly popular for Sydneysiders in particular to buy properties more than 1,000km away in Adelaide. There are plentiful, affordable investment options, all within 10km of the city’s CBD – more than a quarter of Adelaide’s homes have a median value of $400,000 or less, according to the latest CoreLogic data.”
Hotspots in the area include Campbelltown and Greenwith in the northeast and Happy Valley in the south, as per the winter Price Predictor Index report from Hotspotting’s National Top 50 Locations for Consistency. Factors contributing to their popularity include accessibility to the CBD, the availability of public transport, and amenities such as schools, shopping centres and green spaces.
SUBURB TO WATCH
SEACOMBE GARDENS: Seaside investment for a steal
With the median house price still sitting below $450,000, Seacombe Gardens offers a rare opportunity to find an affordable investment property that is not only close to the city but also by the sea.
Just 3km from the nearest beach and less than 15km south of the Adelaide CBD, the area is well connected, with reliable public transport links on three sides of the suburb.
The seaside location, combined with proximity to the city, means landlords can expect to charge rent of around $390 per week for a house and $400 for a unit.
The area has experienced slow but reliable growth in recent years, with house prices rising 2.9% over 12 months, 8.8% over three years and 14.9% over five years.
Transport: Solid public transport links can be found on three sides of the suburb
Location: Seacombe Gardens sits just 3km from the nearest beach