The South Australian capital city of Adelaide continues to show growth since the coronavirus crisis began, and it doesn’t look like this will change anytime soon.

Posted in: Insights, News

09/03/2021

The South Australian capital city of Adelaide continues to show growth since the coronavirus crisis began, and it doesn’t look like this will change anytime soon. 

The property market in Australia’s state capital cities have diverged since the coronavirus crisis reared its ugly head and disrupted the economy. While some cities continue to reel amid the market volatility, some have picked up relatively quickly thanks to a combination of economic and demographic factors, as well as state and local policies. 

One of Australia’s leading property market experts, said that Adelaide “shows good potential for investors who want to buy and hold. It’s a property market that combines liveability and affordability with long term growth consistency and price stability.” They added that largely “the city avoids booms and busts that other large city housing markets experience,” resulting in “a much more consistent rate of price growth than bigger cities.”

Adelaide has affordable housing, controlled volumes of new housing supply, tight rental supply and an appealing lifestyle. These are all solid fundamentals for growth and what makes Adelaide so appealing to investors. The fact that Adelaide has a lower reliance on overseas students, tourists and migrants compared to the eastern capital cities, is also a positive. The Adelaide property market has largely remained insulated from the impact of the pandemic. 

JobKeeper data from the Australian Bureau of Statistics (ABS) reveal that of the eight capital cities, Adelaide had the lowest portion of businesses registered for the COVID-19 income support package as well. Granted that Adelaide is not as densely populated as other states, this is still a positive. 

What we are actually seeing now is a property ‘boom' with Adelaide recording sale prices for tens of thousands of dollars above the asking price, with supply down and demand up. This is still good news for investors with so many wanting to return to or live in Adelaide. 

Speak to one of our Mortgage Brokers today about an investment loan. Call 8300 8300 or email us at info@bernielewis.com.au.