Uplift in the premium market is often an early signal of a strong market upcycle, “Kensington Park, St Georges, Henley Beach South, Hyde Park, and Hazelwood Park all have median prices above $1 million and have had median price growth of 20 per cent or more in the past year. Other upper-level suburbs like Glenunga, Norwood, Kensington Gardens and North Adelaide have had growth above 10 per cent.
This reconfirms the theory that outperforming areas can be found even when the overall market appears to be moderate.
Adelaide has experienced something of a recovery since then but hardly in the mould of a Sydney and Melbourne rampant price growth of the past 5 years and that’s the way it’s expected to continue to perform in 2020 – steadily, reliably and slowly.
Overview 2020 & Beyond
“Property is definitely the favourite industry in South Australia and I’d expect growth of about five to six per cent across the Adelaide metropolitan market over the next 12 months,” Ouwens says.
With the Melbourne and Sydney property markets overheating and now starting to come off, we’re seeing more and more interstate and overseas buyers looking at Adelaide. It’s starting to head towards a sellers’ market and heading in the right direction.”
“The amount of listings has been down lately but the market is very stable. We haven’t had the same cross-market strength of Melbourne and Sydney over the past 12 months but it’s evening out to be quite a steady market. The price point in the inner-metro area of the second homeowners moving up is starting to mesh with the baby boomers looking to downsize, so there’s this crossover of markets taking place in that $600,000 to million-dollar bracket.”
According to the latest NAB Residential Property Survey, Adelaide property values could see further growth in the months ahead, with house prices expected to increase 1.7 per cent in 2020, the equal highest forecast growth with Hobart.
While the predicted growth is modest, it is still significantly ahead of the forecast average for combined capital cities, which are showing a drop of 0.1 per cent.
Adelaide is also up 0.2 per cent on the 1.5 per cent growth forecast last year