The Adelaide real estate market offers investors excellent prospects heading into the new year, with quality dwellings on the market
Investor confidence in Adelaide remains strong in light of the major infrastructure works designed to boost the state’s economy.
“Little ole’ Adelaide doesn’t make the headlines, but it continues to do quite nicely. Even though those of us that live in Adelaide might get a little irate when we have to drive by roadworks very slowly, the benefit is that all these major road and rail construction projects are creating employment, which is a boost to the South Australian economy,” explains Peter Koulizos, program director and Master of Property School of Architecture and Built Environment at the University of Adelaide.
Koulizos highlights the medical sector as a strong contributor, with the establishment of the new Royal Adelaide Hospital, the SA Health and Medical Research Institute, and the University of Adelaide Health and Medical Sciences building set to draw professionals into this field. The capital has also yet to feel the effects of winning the major defence contracts to construct high-tech ships and submarines for the government.
“This will attract highly skilled labour to the state. Based on the major infrastructure projects in South Australia, the performance of other major capital cities and the timing of the property cycle, Adelaide will be one of the bestperforming capital cities in the next 12 to 18 months,” Koulizos predicts.
The recent sustained positivity in the market has investors acting more wisely when it comes to buying the right property.
“The month of August 2019 saw a stark contrast in activity between the first half of the month and the last, as well as a general feel in the market,” says Katherine Skinner, director of National Property Buyers SA.
“In early August, we felt the desperation of investors wanting to jump into poor investment choices just to make a purchase, whereas now there is an air of calm and calculation felt among investors who now have some solid options.”
With new stock hitting the market, buyers have more investment-grade property to choose from. Quality dwellings are sold within days.
“We are expecting to see significant growth with this continued momentum over the spring quarter in certain pockets within the metropolitan area, especially within the northeastern suburbs and inner west.”
SUBURB TO WATCH
SOMERTON PARK: Beach suburb sustains some growth
Somerton Park is just 12km from the Adelaide CBD, and its beach of the same name once gained notoriety as the site of the Somerton Man case back in the 1940s.
Today, however, the suburb has developed into a highly rated living area, with residents praising its tranquil atmosphere and excellent public transport network. It is also situated within the Brighton High School zone. The beach has also become a place to be for visitors and residents alike, thanks to its safe, clean environment.
Unit prices rose by 3.3% in the year to August 2019, pushing the median up to $398,646. By contrast, house prices dropped slightly.
Tourism: Somerton Park beach and the tranquillity of this suburb attracts tourists and residents alike
Amenities: The suburb is in the Brighton High School zone, and public transport is good
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