Adelaide continues to enjoy a strong real estate market with the city of churches notching up property price growth of 21.23% in the year to July 2022.
The figure, revealed in REA Group’s PropTrack July Home Price Index, means Adelaide property price growth is the second highest in the nation, just behind Brisbane at 21.26%.
The PropTrack report showed only South Australia and Western Australia experienced both capital city and regional market price increases in July, with the increase in prices for Adelaide and regional South Australia recording new price peaks.
Adelaide brokerage Rise High Financial Solutions managing director Marissa Schulze (pictured) said there were two main factors driving record property prices in South Australia.
“We are seeing very strong rental returns here which is appealing for local and interstate investors as our rental vacancies are sitting at 0.2%,” Schulze said. “The other factor is our lower price point. It is still affordable for people to buy a home here, compared to other capital cities such as Melbourne and Sydney.”
Read more: How is the Adelaide property market performing?
Schulze said Adelaide was overdue for its next round of property price growth.
“I think we are now playing catch-up with the rest of the country,” she said. “Experts are predicting our local market to stay strong. Adelaide’s market historically performs well where we have a big growth period then stabilise for a number of years, as opposed to Sydney and Melbourne markets which boom and bust.”
Schulze said the local market was always driven by supply and demand.
“During COVID-19, we saw great net migration figures with people choosing to return or move to Adelaide, which put demand on the property market,” she said. “The pandemic also shifted people’s desires to decide what they want in a property, with many looking to upsize for a bigger home on more land.”
Schulze said Adelaide presented as a good opportunity for longer term property investors.
“People choosing to buy here can purchase an investment and sit on their asset for 10 to 15 years and watch it grow,” she said. “If you choose to buy in Adelaide rather than other capital cities, you will not need to outlay as much out of your own pocket as a deposit to begin with.”
Read more: Australian home prices fell again in June
As a mortgage broker, Schulze said it was hard for some of her clients to secure a property in such a competitive market.
“I have some clients who have been looking for a home for a long time now and it has been challenging for many,” she said. “I have been giving my clients coaching along the way and supporting their journey. I have told some that they should take a break from property shopping because it can be draining getting knocked back for so many homes.”
Schulze said brokers needed to keep their clients educated throughout the property buying process.
“Provide your clients with good access to information and make sure they are looking in the right price point,” she said. “As brokers, we should be speaking with good real estate agents and talking about what is happening in the local market and what our clients need to know to secure a property. We need to support them through every step of the journey.”
