Adelaide Property Snapshot 2021
As property valuers we spend a lot of time researching and comparing the value of properties and we thought we would bring you a few insights into the Adelaide property market.
Adelaide has been quite resilient through the Covid-19 pandemic compared to the other Australian major capital cities.
Up to January 2021, the annual growth for the previous 12 months was 5.9%, and the time a property spent on the market had dropped to just 42 days, compared to 49 days in November 2019. The total number of listings is also down to 13,391 compared to 15,916 in Jan 2020.
With less stock on the market and a fair amount of demand, properties are selling quicker and for more.
Across Adelaide the current median house value is just a touch under $500,000.
The suburb with Adelaide’s highest median house value is Unley Park at $1,397,000, and for units it is Eastwood with a median value of $514,000. Both are highly desirable locations located just to the south of the Adelaide CBD.
In regards to rent prices, 2020 saw the beach suburb of Grange record a 8.4% growth in unit rents, while a little further away, Port Elliot had a massive 23.7% growth in housing rent prices in 2020. (Source: Core Logic)
The ANZ bank is predicting 6% growth in housing prices, and NAB 7.4% across Adelaide in 2021.
The suburbs to watch in Adelaide:
The CBD – inner city living is always in demand.
Prospect, located just north of Adelaide’s CBD is certainly a suburb to watch. There were 154 sales in Prospect in 2020 with a medium value of $752,610. Prospect has seen a compound growth rate of 4.9% over the past five years. With strong long term growth and its location close to the CBD, it is possibly still a little undervalued.
Magill, nestled in Adelaide’s foothills is also a suburb that is on our radar. Famous for the Magill Estate and Penfolds winery it is only 7km from the CBD, and it has a campus of the University of South Australia.
Hove and Glenelg East, in the South West have both had high growth in the past 12 months. They are both smaller suburbs with fewer properties on the market, so the data on the median sale price can swing greatly depending on what properties sell in a given period. With that in mind, and although they are in the $800,000 -$950,000 price range, they are both suburbs that are in demand. They offer solid rental yields and we think they are two to watch in 2021.
Finally, Banksia Park in Adelaide’s North East, is also one suburb on our radar. This one is a little more affordable with a median sale price of $454,000. On the urban fringe, it offers the chance of a tree change for those wanting to get out of the inner suburbs.
For first home buyers the Adelaide suburbs to look out for are:
Parafield Gardens in the North, has seen small compound growth of just 3.7% per year over the past 5 years, so is probably a little undervalued for its location. It is located right next to Parafield Airport which is Australia’s 3rd busiest airport by the number of aircraft movements, so if you don’t like aircraft noise it may not be right for you, however Parafield Gardens it is one to watch.
Morphett Vale is a little further out but has a great location close to O’Sullivan’s Beach. The median house price is just $325,000 which is why it is very popular with the first home buyer’s market.
What about the Tunnel?
Well South Australian’s have been waiting a long time for this, but it is finally happening (although construction won’t begin until 2023).
So, what does it mean for property prices? It means that the north and south will be even more accessible. Travel times will be greatly reduced which means that the suburbs along the route that are further out, will become even more appealing. But not quite yet…
Construction is due to be completed in 2030, so your travel time from Parafield Gardens to Flinders University won’t be slashed for quite a while. There certainly will be growth in property prices along the corridor as the project advances, but it will take a little while.
Adelaide’s property market summary:
The median house price in Adelaide over the past 10 years has grown at an average rate of 2.6% annually. In December 2010 the median house price was $405,000 and in the December quarter of 2020, Adelaide’s median house price was $510,000. (https://www.sa.gov.au/topics/planning-and-property/buying-and-selling/researching-a-property/median-house-sales-by-quarter)
BUT… based on the latest data from CoreLogic, Adelaide has seen property price growth of 2.7% in the last quarter alone.
We believe that even with the pandemic in-mind, the Adelaide property market is set for a good year. The lack of supply and high demand, will put upward pressure on the market as we emerge from the Covid-19 induced slow down.
If you own a property in Adelaide and want to know its real value, or you are thinking about buying one and want to make sure your offer is on the money, then fill in you information below and we will contact you with a quote for a professional valuation.