A high level of apartment supply is expected to be completed over the next three years in Inner Adelaide, according to the latest market snapshot by JLL.
The city appears to be under a period of elevated construction activity, with about 3,220 apartments in the pipeline that could be completed between the end of 2019 and 2023. Of these, around 1,440 are already under construction.
"Completions will pick up slightly in 2020, with around 969 apartments currently under construction and expected to complete by the end of next year. Beyond 2020, there remains a reasonable pipeline of projects, with plans for over 1,000 apartments to reach completion in 2021 and a further 7000 in 2022," JLL analyst Michael Willers said.
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However, he said the demand for these units could remain muted given the tighter lending conditions and the end of the state government's off-the-plan apartment concession.
The table below shows the supply pipeline in each precinct inside Inner Adelaide:
Willers said the high level of supply and softening economic climate in Adelaide could result in a moderate pressure on unit prices over the next couple of years.
"Apartment prices and rental growth may come under pressure. Fortunately, the affordability of the Inner Adelaide residential market compared to the East Coast markets may lure more investors to South Australia, where rental yields are relatively attractive," he said.