The Adelaide market is well-positioned to emerge from the COVID-19 outbreak with the ideal prospects for growth, according to experts.
Terry Ryder, founder of HotSpotting.com.au, said Adelaide is one of the most consistent property markets in Australia, given the steady demand, solid local economy, and housing affordability.
"Adelaide also had a very low vacancy rate heading into the shutdown period: an overall vacancy rate below 1%, which means the city's rental market is well-placed to absorb the extra rental stock coming into the market because of the impact of the virus shutdown," he said in a think piece.
Even with the increase in the number of housing stock in April, Adelaide still has one of the lowest vacancy rates amongst all capital cities at 1.2%, according to SQM Research.
"I see Adelaide as being one of the best capital cities in the nation for real estate investment with good prospects for future growth, as well as above-average rental yields," Ryder said.
The city's resiliency could be attributed to its local economy. Ryder said Adelaide is the "high-tech innovation capital of Australia" and South Australia is considered a leader in alternative energy production.
"It has been transitioning strongly from old-style manufacturing to the production of modern technology products," he said. "One of the likely outcomes from the virus crisis is a revival of manufacturing in Australia and Adelaide is well-placed to benefit from that."
Emma Slape, CEO of Turner Real Estate, said Adelaide remains attractive despite the impacts of COVID-19 on the housing market.
"The Adelaide market is traditionally quite stable, offering an affordable entry price with good long-term stability in property prices," she told Your Investment Property. "We are seeing more and more young interstate people buying in Adelaide to get their foot into the property market — while they continue to rent interstate."
Slape said the housing market of South Australia, in general, is not vulnerable to extreme price fluctuations.
"This will help hold our prices a little firmer. There is still activity in both the rental and sales market, and this is expected to continue along, just at a slower pace than we have seen previously. In the next few years, we may not see strong price growth, but more so stability in pricing," she said.