SA Adelaide Market 2022

Adelaide closed out 2021 strongly with 2.5% month on month growth, what are we expecting for Adelaide in 2022? is anyone planning to buy in Adelaide?

I read that 2021 saw the most property sales in Adelaide since 2002 so the current growth certainly seems to be demand driven and easily soaked up above average supply, will be interesting to see what plays out!

 

Planning to sell

 

Why do you want to sell?

 

Well, as part of retirement plans need to sell one, originally wanted to sell in SEQ.

Now thinking the Adelaide one is best to sell.

Haven't exactly moved at breakneck speed, in fact might be as late as 1 July I do it.

Do u think it is silly to sell? Is Adelaide going strong all 2022?

 

@See Change @sash What are you thoughts?

As per ABS data, the Median house price in Adelaide in Dec 2011 was 385k and it is 590k in Dec 2021. That is 53% growth in 10 years. I guess there is still a lot of room to go. Even it pulls back after a big run, I do not think it would be severe.

Below is the ratio between Brisbane and Adelaide from 1970 to Dec 2021. It oscillates around 1.1. Personally, I think that Brisbane has more potential to become a global city like Melbourne. More jobs, bigger population growth, better climate, great lifestyle, etc.

 

I also feel the same, Brisbane time to shine as a global city coming for several years, it will come out of Sydney and Melbourne shadows. Adelaide turn will come in the next 10 years but Adelaide will nurture nicely till then.

 

How's the rental market in ADL at the moment? Tenants are breaking the lease and I'm looking to get more rent, say $30 more (if I can).

 

Rental market has been really strong our last lease renewal in December the pm suggested more than a 10% increase but we have opted to reno and sell that property instead. Have a look at rentals available in the area on realestate and that will give you a pretty good picture on what market rent is. You might find more than $30 increase is possible.

 

There's quite a bit going on in the jobs front in Adelaide with several multinationals expanding their presence or setting up in the city including the likes of Amazon, Salesforce and Google. This week PWC announced the further expansion of its tech hub alongside those already being set up by Accenture and Deloitte. Then CBA announced it was setting up its tech hub at Lot 14 as well.

My observations to date indicate that quite a lot of these roles are being filled by people moving from interstate. Anyone else noticed anything similar or have further thoughts on the impact?

 

I have noticed a few more listings, but my area of interest has very few overall, and all houses are selling at auction and before auction.

Family member searching out a rental was able to get one, not easy process.

So Adelaide still seems on the boil after a slight pause.

Weather has been good in Adelaide this year. Where are the heat waves?

 

Adelaide is still very affordable. I think Brisbane will hit with unaffordability tag due to DTI ratio the later part of 2022. I still think potential 10% upside for Adelaide in this year.

 

https://www.domain.com.au/auction-results/adelaide/

94% clearance rate on the weekend with a median price of 975k

 

Are the 'Blue Chip' Local Government Area (LGA) median house sales a leading indicator of the capital growth to come throughout 2022 for the middle- outer ring LGA's? I think... yes.

4Q 2019 to 4Q 2021 (2 yrs of capital growth):
LGA of Burnside up 60%
LGA of Norwood, Payneham & St Peters up 54%
LGA of Unley up 49%
LGA of Holdfast Bay up 45%

Data source: Latest Market Update - REISA

 

I noticed that too- I don't think I've ever seen Auction clearance rate for Adelaide that high before...

 

Yup, and check out Walkerville too

 

I tend to ignore Walkerville LGA (due to only 21 sales for the 4th Quarter of 2019 and only 23 sales 4th Q 2021) . Dito with Adelaide LGA houses, not enough sales for the statistics to be reliable (units fine though).

 

Prices still seem to be increasing in the south too. can agree we may see another 15% this year. most of this is catch up, as prices languished in the south with virtually no increase for 10 years 2010-2020 - properties values weren't even keeping up with inflation.

We will look back in a year or two and think $350k for a 800sqm block of land and liveable property less than 1km from the beach and 25 mins commute to a major city was crazy crazy cheap.

In addition, the T2D Gawler to Noarlunga Highway and Airport link which is now fully funded to the tune of $10bn and will definitely be built, will greatly add to the attraction of some of the more southern suburbs IMHO. It's a game changer for this part ( and others of course) of the city.

 

Who thinks Adelaide UNIT market is going to do some price catching up in 2002 or are units going to continue to under-perform the housing market??? I've been digging to find historical Adelaide metropolitan median unit prices to compare against houses, but unfortunately can only find data going back to 2010, I'll summarise what I found here from old REISA reports;

4th Quarter 2010 Adelaide metro UNITS median $300,000
4th Quarter 2021 Adelaide metro UNITS median $412,500
so 37.5% capital growth over 11 years, but that's a real capital growth (minus the 25.5% inflation over this period) of only 12%.

If anyone has Adelaide metro UNIT medians going all the way back to year 2000 - shout out to any real estate agents on here- I'd appreciate the data . I'd really like to see what units capital growth did during the last Adelaide boom of 2000- 2009, if units CG was comparable (%change wise) to houses during that period or not?.

 

Adelaide is a gem, very underrated market and very good quality of living. Electricity costs probably an area of concern though.

 

just get solar if your worried about it, it's like 8c a kWh more expensive on average which really isn't much in the grand scheme of things when you start to compare the other costs of living