AFTER years of slow and steady value growth, Adelaide’s property market is set to switch up a gear.
According to property analyst Terry Ryder of Hotspotting, 2018 will see house price growths of up to 9 per cent, up 4 per cent to this year, with middle and low-market suburbs the star performers.
His claims are based on data published in the Hotspotting’s Spring 2017 Price Predictor Index, which ranks Adelaide ahead of Sydney, Melbourne and Brisbane in terms of the number of growth suburbs.
“What the report figures show is that Sydney and Brisbane have passed their peak and that Adelaide has more upside (for investors),” Mr Ryder said.
“Historically, Adelaide has been a very steady market without high peaks as other cities have had.
“But there’s prospect for that to improve with things in the pipeline for South Australia, such as the navy vessel project, which will revive the resource sector and that will flow back into the Adelaide property market.
“As such, we will see better price growth … we will see 7 or 8 or 9 per cent in Adelaide next year, which is a pretty healthy growth.”
Suburbs to watch include those within the Marion council area, a middle-market area, which now has nine suburbs with continuous price growth.
Oaklands Park, with a median price of $470,000, was the area’s star performer, after sales lifted from 18 to 41 in the past six quarters.
Another middle-market area, the Charles Sturt council area, also ranked high in the report with growth suburbs including Findon, Grange and Semaphore Park.
On the upper scale, North Adelaide, Walkerville, Semaphore, Prospect, Belair, Woodville South, Fullarton, Somerton Park, Gawler East, Crafers, Craigmore and Elizabeth Park were the city’s top performers, recording double-digit growth in their median house prices in the past 12 months.
Real Estate Institute of South Australia (REISA) CEO Greg Troughton said Adelaide was well overdue for major price growth.
“We are well overdue for that one-year burst of bigger than average median house price growth so I would not be surprised (by the prediction),” he said.
“It’s always a good vote of confidence when you see rock solid growth with a double burst of energy median.
“The remarkable value for money one gets here in SA, dollar for dollar is outstanding. People interstate see that value, especially against that double digit growth both Sydney and Melbourne have now seen for several years.
“Having said that, I hope that despite the predicted growth that Adelaide and SA remains the most affordable mainland state.”
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