Withstanding the downward trend in other capital cities, the median house value in Adelaide reach record highs
Adelaide, Australia’s fifth-biggest city, has seen surprising record highs in its median house value as it clambers toward $620,000 as of Feb. 1st, 2019. This is happening despite the downward trend in Australia’s other major cities and even nationwide, as October 2018 saw the sharpest annual decline in over 6 years.
According to property analysts at CoreLogic, median prices nationally in Australia hover around $538,000 as prices have fallen 3.5 per cent over the course of 2018. Capital cities have been shielded somewhat from such a drastic decline but still show a 1.6 per cent drop in the last quarter of the year.
This trend carried on into 2019 as the figures from CoreLogic show Adelaide up 0.03% quarter on quarter, and capital cities like Sydney and Melbourne falling as much as 4.44%. In fact, out of the 5 capital city aggregates, Adelaide shows the only uptick in home values.
Out of the 10 suburbs and towns that property research site Hotspotting.com.au has recommended, Adelaide made the list twice with Lightsview and Mitchell Park. Lightsview, where the median house value is $480,000, is under watch due to the Navy vessels construction project boosting the local economy and Mitchell Park looks to be an affordable area priced around $455,000, that offers well-developed infrastructure relative to its surrounding suburbs.
Brett Roenfeldt, president of the Real Estate Institute of South Australia, is quoted as saying “A record median price coupled with a significant increase in sales clearly demonstrates the continuing resilience and strength of the South Australian property market.” Roenfeldt is especially optimistic of the steady market in South Australia for 2019 and noted Adelaide’s rise in values, pointing out that it sends a clear message to the rest of the country that Southern Australia was the place to invest.
“Even though we have this great growth, it’s important to keep in mind that we are still the most affordable capital city – so I think there is an enormous amount of upside in the Southern Australian market,” he said.
“A number of economists at the moment are saying if you’re investing, you should be putting your money across into the South Australian marketplace. We’re starting to see a bit of it, and I think we’ll start to see more of it in the coming year as Sydney and Melbourne investors look to move their money into our market.”
Noting the median gain, Roenfeldt is of the opinion that Adelaide is in a great position to ride out any market alterations, even if Labor won-out in the next federal election.
“Regardless of who gets in at the next federal election, Adelaide and South Australia as a whole is still sitting there as a very, very stable place to put your money,” Roenfeldt stated.
Continuing into 2019, it looks as if housing in Adelaide is not only a great investment, but its affordability puts other capital cities like Sydney and Melbourne to shame. All pricing aside though, who wouldn’t want a vineyard like Borossa Valley in their backyard?