Prior to 2020 Adelaide’s housing market was often considered affordable when compared to our eastern neighbors, however increased demand from first home buyers, South Australia’s success over the pandemic and fewer listing have seen housing prices reach record highs over the last year.
The outer southern region of Onkaparinga has recorded the highest increases up 10.8%, whereas the Adelaide CBD is the only region to record a decline of 1.2%. As a whole housing prices increased 0.8% in February, which whilst still being significant is less than the figures seen late last year, with November boasting a 1.3% growth rate. Although growth rates are beginning to decline, with huge demand still remaining within the market and limited listings, it would appear that prices will keep increasing at a significant rate well into 2021.
The future for rental prices also looks strong within Adelaide. Housing rentals rose by 2.6% in 2020 and units by 1.4%. The upwards trend for units and rentals looks to continue with vacancy rates continuing to increase, causing more competition amongst renters for fewer properties. Homes in inner-city areas are leasing particularly quickly, pushing rents up in these areas around 5%.
With industries such as Defense, cyber and space beginning to grow in Adelaide, which has lead to the reversal of Adelaide’s brain-drain it must be assumed that long-term upwards pressure will continue to be placed on the housing and rental markets within Adelaide.