Article from “Hotspotting” by Terry Ryder
This is largely through a failure to understand the improvements in the South Australian economy and the pipeline of major events which will drive demand for residential real estate.
The Adelaide market is already highly active and producing stronger price growth (in specific precincts) than the generalised growth data suggests.
In 10 of the past 12 quarterly surveys conducted by Hotspotting for The Price Predictor Index, it has recorded between 44 and 50 suburbs with growth momentum. The growth markets are spread across the Adelaide area, including a range of price points.
South Australia, dominated by Adelaide, has impressed with its steady performance in the past four years. Each of the past 17 quarters has recorded between 8,500 and 9,500 dwelling sales.
In the Summer 2018 edition of the Price Predictor Index report, Adelaide ranked ahead of Sydney, Melbourne and Brisbane, as well as the recovering Perth market, in the number of growth suburbs.
And while research firms report annual growth of only 4-5% in Adelaide prices, these generalised figures disguise precincts which have done better.
Overall we see Adelaide as being a much stronger market than it’s given credit for – and one that’s worthy of consideration by investors, especially from the viewpoint of affordability and value for money.