Adelaide property market outlook for 2020
Adelaide Auction Results for Saturday 14 March 2020
There were 62 residential property auctions held in Adelaide on Saturday 14 March 2020. 63 per cent produced a sale, up from 50% last year, for a median sale price of $772,500 in preliminary results reported by Domain.
LOWEST RATE HOME LOAN NOW: Check out the lowest home loan rate on InfoChoice right now – 2.47%pa (comparison) from Reduce Home Loans.
COMPARE HOME LOANS: Compare 1800 home loans from 99 of Australia’s major banks, credit unions, neobanks and other lenders at InfoChoice.
REAL ESTATE: Keep up to date with the latest capital city property market news, results, outlook and forecasts at InfoChoice.
RATES: Keep up to date with the latest Australian interest rates outlook at InfoChoice.
Adelaide Auction Results, Saturday 7 March 2020
There were 44 residential property auctions held in Adelaide on Saturday 7 March 2020. 71 per cent produced a sale, up from 46% on the same weekend last year, for a median sale price of $585,000 in preliminary results reported by Domain.
Health authorities are trying to contact anyone who attended an auction at 4 Pam St, Firle on 22 January 2020 after learning that the auction, organised by Ray White Real Estate at Dulwich, was attended by two coronavirus sufferers.
Read more trending financial news at InfoChoice.
Adelaide Property Market Update, 5 March 2020
The Reserve Bank of Australia cut interest rates this week by 0.25 percentage points to 0.50%. All big four banks and most other lenders have passed on the cut in full. RBA governor Philip Lowe said coronavirus is having a significant effect on the education and travel sectors and creating uncertainty for consumers.
A full list of lenders that have cut their rates this week is at InfoChoice.
“As a result, GDP growth in the March quarter is likely to be noticeably weaker than earlier expected.”
Dr Lowe also said there are “further signs of a pick-up in established housing markets” and said home prices in Australia are “rising in most markets, in some cases quite strongly.”
“Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.”
“Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality,” said Dr Philip Lowe.
Adelaide Auction results show price going up – over $600K
There were 64 residential property auctions held in Adelaide on Saturday 29 February 2020 with 71% producing a sale, up from 39% on the same weekend last year. The median price for properties sold was $605,250, reported Domain in preliminary results.
South Australia is a SLOW and STEADY property market
The median metro Adelaide house price grew (over the past five years) by 16.1 per cent according to realestate.com.au. However 35 suburbs have seen house prices boom by more than 30 per cent with two suburbs experiencing 50% price growth over five years.
Thebarton, west of the Adelaide CBD, house prices have increased by 52.3 per cent over the past five years to a median of $670,000, reported News.com.au. Netherby median house prices have increased by 50.6 per cent to
Real Estate Institute of South Australia president Brett Roenfeldt said Adelaide traditionally offered slow and steady house price growth.
“Investors should be looking at the Adelaide market because of that consistency, as long as you’re prepared to hold it for five years or longer,” said Mr Roenfeldt.
Australia’s property market is certainly looking rosier than it did this time in 2019. There have been interest rate cuts from the Reserve Bank and more relaxed lending conditions, giving both borrowers and lenders more certainty, which means more market movement.
Adelaide property – green shoots of recovery
Most analysts are expecting a period of moderate growth in the property market for 2020, with the capital cities leading the way.
Adelaide house prices fell in 2019 but starting rising again after October 2019, according to SQM Boom and Bust Report.
Growth in Adelaide has been fairly flat for the last decade – just 1.2 per cent per year for houses and 0.17 per cent for units.
Landlords are in clover
Landlords have seen more money coming in recently, with some vacancy rates in Adelaide reaching their lowest point in almost a decade – at just one per cent.
This is good news for landlords and aspiring investors alike, as Adelaide median rents rose 2.8 per cent across the board. House rents were up by 3.4 per cent and units were up by 4.9 per cent in Q4 of 2019.
The average price for a house in Adelaide is $462,177 and units cost an average of $323,599.
What’s in store for 2020?
Forecasters believe that Adelaide will stay stable, with modest growth this year.
Domain predicts that there’ll be growth of between one and three per cent for units and houses alike, with the final figure landing somewhere around 2.7 per cent.
With home lending seeing less of a decline in South Australia than in other states, Domain reports that this may contribute to a less significant rebound. Other factors contributing to this sentiment include:
South Australia is, according to Domain, having less of a decline in lending than other states, there’s not such a dramatic rebound. Other factors helping this gentle growth curve include a slight growth in population, an easier job market and more interest in buying than elsewhere in the country.
QBE research thinks that there’ll be a more dramatic rise in house prices – 3.4 per cent – while unit prices will grow at just 0.8 per cent. By June 2022, the median house price should be $550,000, an increase of 12.3 per cent on September 2019.
The NAB Group expects reasonable growth of around 4.5 per cent in state capitals in 2020, but believes that Adelaide will fall by 0.8 per cent.