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
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
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
“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?