Adelaide property prices are ‘sky rocketing’ at a faster rate than every other state capital at present, as buyers are taking advantage of record-low interest rates.

Posted in: Insights, News

04/03/2021

Adelaide property prices are ‘sky rocketing’ at a faster rate than every other state capital at present, as buyers are taking advantage of record-low interest rates. 

The city’s combined median house and unit prices jumped 7.3 per cent in the past 12 months, to $478,587. That was nearly three times the 2.6 per cent combined rate for all capital cities, according to Core Logic’s latest Hedonic Home Value report.

According to the report, Adelaide’s houses values were up 3.1 per cent for the past quarter and 7.6 per cent on this time last year.

Metropolitan units were also strong performers – up 5.2 per cent for the year. 

Adelaide buyers are in a race to secure properties, driving up house prices and the cost of renting. Hopeful buyers are travelling as far as Crystal Brook and Kingston in the South East to inspect properties. People are so worried about missing out and not boarding the merry-go-round and they are prepared to pay ‘crazy’ prices. They are not waiting for auctions and they are not waiting for other people to catch up.

Core Logic’s research director Tim Lawless said strong property growth was visible in every capital city and had been fuelled by a combination of record-low mortgage rates, government incentives, improving economic conditions and fewer homes being on the market. Mr Lawless said Australia hadn’t experienced widespread growth like this in more than a decade. However he warned the reduction of government incentives, such as JobKeeper, would be a significant headwind for the property market.

Regionally, SA homes were up 6.5 per cent for the quarter and 11.5 per cent on this time last year.

Meanwhile, a separate Core­Logic report showed Adelaide’s auction clearance rate currently sits at 82.5 per cent, with houses selling on average within 40 days. Buyers who shop around for the best interest rates can source rates here https://www.bernielewis.com.au/loans/home-loans/interest-rates/

The Advertiser last month reported that real estate agents were experiencing their biggest demand for rental properties in more than a decade. They said they were receiving hundreds of inquiries per home because fewer people were leaving the state.

Getting organised is probably one of the best ways to be prepared for this new phase of purchasing. Speak to one of our Mortgage Brokers today, have your pre-approval https://www.bernielewis.com.au/useful-tips/what-exactly-is-a-pre-approval ready and be in the race!