Not even 12 months ago, Adelaide was getting very little attention for anything other than its economic struggles and failing job market. Now, the City of Churches is the perfect example of how easily the tide can turn as it stands tall over its peers in the wake of the countrywide downturn.
Confidence is high in SA as CoreLogic’s Home Value Index for June 2019 named Adelaide the best-performing capital city for June 2019. Over the quarter, when all capital cities saw property prices fall, Adelaide experienced the lowest decline.
The research group also reported that over the last few months sales figures have been higher across Adelaide, and market activity is higher than the decade average. Furthermore, in June, regional SA was the only area other than Hobart to record an increase in dwelling values.
“Adelaide should be given the nickname ‘BP – the quiet achiever’, as unlike some of the other major capital cities around the country, Adelaide’s property prices continue to grow,” says Peter Koulizos, program director of the Master of Property at the University of Adelaide’s School of Architecture and Built Environment.
“One of the main reasons is that there is a significant amount of infrastructure construction going on. There are major road and rail construction projects underway which are employing much skilled labour, both on the ground and in the offices.”
In addition to roadworks, the defence contracts that Adelaide has won in recent years are expected to attract highly skilled employees to the city due to the technical expertise required to work on these projects.
Adelaide is also recognised as the home of the biggest biomedical precinct in the southern hemisphere, drawing medical researchers and practitioners who are seeking well-paying positions. This availability of work is certainly a big contributor to enhancing property demand as the population swells and begins to require more living space.
“The high-skilled labour force required will boost the economy and property market, when they all start to look for property to rent and buy,” Koulizos predicts.
“It may not hit the headlines with double-digit growth, but its property market will continue to go from strength to strength.”
SUBURB TO WATCH
MARDEN: Units enjoy consistent growth
With Adelaide on the cusp of greatness, its surrounding suburbs have begun to follow. Marden, located around 15 minutes from the CBD, is certainly no exception, as its unit prices have been rising steadily since 2014. Their median value hit $338,021 after a boost of 5.5% in the 12 months to June 2019.
It was a different story for the house market, however, which saw prices drop by 3.1% during the same period. Nonetheless, that market rests on a foundation of double digit growth in recent years as well, so its potential remains strong.
Residents are well served by an abundance of amenities in the area, including a local pool, churches and a shopping centre.
Amenities: The suburb is home to sports facilities, churches and a shopping hub
Location: Marden is just a short distance from the Adelaide CBD
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