SA Adelaide

Anyone have any thoughts on the current market in Adelaide? Do you think prices will drop much in the next 30-60 days or will it be longer term?

 

While I’m no expert I would expect Adelaide to be less volatile than Sydney or Melbourne in terms of price drop.

 

I'm getting a few PM about Adelaide from interstaters - must be some interest in it !

 

I suspect it will be longer term, more continued falls.

South Australia went into recession at the end of last year - well before COVID19. September quarter recorded a -0.3% fall in State Final Demand, December quarter was -0.2%.

So falling house prices in SA is not just because of COVID19 that will come and go, but because of a more normal structural economic recession. The later will naturally take more time to repair.

 

Same, mostly inquiring about NW area.

 

People always said adl market is less volatile and won’t drop as much as Melb and Syd but the reality from GFC was Adl had been hit hard throughout 2009-2015. The ripple tend to hit about 1, 2 years later than eastern states, regardless of boom or gloom.

When eastern states started to boom in 2013-2015, adl never really took off until may be 2016, 2017 and from 2018 till now has been pretty flat. The confidence level is just too fragile.

 

It's just a big regional, land size and the ability to add value (renovate) is key in Adelaide I believe if you treat it like Sydney or Melbourne and just rely on capital growth with no input you will be disappointed with your returns.

 

Indeed. If you are looking at it as a neg gear, tax write off with capital gains, probably look else where. I look at it as a low risk, pos gear, manufactured equity play.

 

Quite a few people when younger may leave to look for work in melb or sydney but also a high lot either come back to adelaide or others come from interstate. Adelaide is a much better place to raise a family, less traffic and hustle and bussle then melb and sydney. Perth is the same

 

If this lockdown shows remote work to be successful, perhaps many will not have to leave the state in order to take up Sydney and Melbourne jobs in the future.

 

Why South Australia could lead the nation in economic recovery from coronavirus - ABC News

"However, South Australia's property market is traditionally more stable than the market in most other states — which could be a significant factor in it bouncing back."

 

Adelaide property market to emerge strong from COVID-19 shutdown: HotSpotting's Terry Ryder

On a similar note, an interesting pro-Adelaide read based on current context analysis.

 

Are property prices as low as they’ll go?

"However, some locations will fare better than others,” he said.

“The fundamentals are very strong for the medium- to long-term in certain Brisbane, Canberra and Adelaide sub-markets that we are currently recommending to clients"

 

South Australian properties selling for higher than expected prices

"Mr Doman said the property attracted multiple interstate buyers, who were looking to Adelaide’s market as a safe investment because it hadn’t been hit as hard by COVID-19."

“We are getting a lot of interest from interstate buyers.”

 

Highest unemployment in the nation, beating even Tasmania. No major projects in the pipeline apart from the South Road tunnel and that will probably take years to deliver because the SA government is so broke. Debt has accelerated under Steven Marshall's government and yet we have nothing to show for it.

We were promised 20,000 'space jobs' a few years ago, whatever happened to that?

People without jobs really aren't the best tenants - there's a reason why its so cheap here in comparison to the eastern seaboard.

 

I haven't seen prices drop near me.
How about anyone else?
Infact I'm surprised what people are paying for properties.

 

Prices are still holding up around the areas I've been looking <10km South and West of the CBD. Outer suburbs haven't seen any change from what I've seen and vacancy rates still appear low.

 

Yep, North is still holding strong, and vacancies still seem tight.

 

I just had a look at the area we used to rent (Camden Park). To my surprise there is a unit for rent in the same building I used to live. Same unit ground floor with private front yard. I used to pay $270 weekly until last October when we moved to our PPR.

That unit is being rented now for $300.