Despite a slight downturn in prices, the Adelaide market remains one of the country’s strongest performers, according to property expert and Hotspotting Director Terry Ryder.
Mr Ryder said Australia’s fifth-largest city is predicted to be one of its strongest performers in the coming six months, based on the results of his latest Hotspot Report.
“Adelaide continues to be a city dominated by rising and consistency markets – and one of the national leaders on price growth over the past 12 months,” Mr Ryder said.
“In fact, Adelaide and Perth are the capital city markets which are most resistant to the current downturn pressures in Australia.”
Mr Ryder ranks markets as either ‘rising’, ‘consistency’ or ‘plateau’.
Mr Ryder said that while some upscale markets had shown a deterioration in performance in recent months, most areas remained consistent performers.
“Our latest analysis of sales activity shows that the number of rising markets in Adelaide has reduced, compared to previous surveys, but the number of consistency markets has increased notably,” Mr Ryder said.
“There continues to be growth precincts in various parts of the Greater Adelaide area, but the more expensive areas are the ones that have weakened the most.
“For example, upmarket municipalities such as Unley, Burnside and Charles Sturt now have few suburbs ranked as rising markets.”
Top five Adelaide markets for 2023
Mr Ryder shared with Elite Agent his top five markets for owner-occupiers and investors to watch in Adelaide for the first six months of 2023.
The markets, which each cover multiple suburbs, were chosen based on their sales activity, buyer demand, presence of major infrastructure projects and rental market metrics.
City of Onkaparinga
Mr Ryder said the City of Onkaparinga, located in Adelaide’s south-east, offered a high level of affordability that continued to attract buyers.
“The Onkaparinga LGA is a good fit for the ‘exodus to affordable lifestyle’ trend that continues to sweep across the nation, while also being a location that ticks plenty of boxes for investors,” Mr Ryder said.
“These boxes include lifestyle, affordability, improving transport links, economic growth drivers, population growth, and proximity to major job nodes.”
The city’s highlights included strong population growth, low vacancies, strong tourism, extended rail links to Seaford, a $500 million racecourse redevelopment and a $350 million medical precinct, Mr Ryder said.
City of Salisbury
Mr Ryder said that the City of Salisbury, which encompasses suburbs in Adelaide’s north-east, had shown strong jobs growth during the Covid-19 pandemic, which had in turn boosted local property values.
“Construction on the $1.9 billion Edinburgh Parks Precinct is now under way and is dedicating space to multiple industries including aerospace and manufacturing, defence technology, food manufacturing, logistics support, and automotive industries,” Mr Ryder said.
“This is attracting major companies to Salisbury, which is further boosting employment prospects and activating the property market.”
He said defence projects, the redevelopment of the former Holden plant and the electrification of the Gawler train line were also boosting the area’s prospects.
Tea Tree Gully LGA
Mr Ryder said that the Tea Tree Gully market was a standout performer.
“Within the Adelaide market, the middle market Tea Tree Gully LGA is a stand-out performer,” Mr Ryder said.
“According to our most recent report, seven of its 15 suburbs are classified as rising markets, based on sales activity, with three others ranked as consistency markets.”
He added that low vacancy rates also made the area one for investors to watch.
“With extremely low vacancy rates, the LGA is an appealing prospect for investors and demand for property remains high.”
City of Playford
Affordable homes and a strong local economy meant that the City of Playford should be on buyers shopping lists, Mr Ryder said.
“The RAAF Base in Edinburgh is the engine room of the local economy and is stoking it further with billions of dollars being spent on technology, equipment and infrastructure,” Mr Ryder said.
“This follows the 2020 opening of the Northern Connector, a 16-kilometre six-lane motorway linking northern Adelaide to key freight transport infrastructure.
“These projects have added considerable impetus to the area, which already has the state’s strongest population growth and some of the cheapest homes in capital city Australia,” Mr Ryder said.
“The region’s property market is further characterised by very low vacancy rates and rental yields, which are among the highest of the country’s major cities.”
Mt Barker district
The Mt Barker area offered buyers the best of both worlds, Mr Ryder said.
A short drive from Adelaide’s centre, it was also close to the lifestyle offerings of the Adelaide Hills.
An uptick in first-home buyers in the area in recent years had led to big plans for infrastructure, he said.
“Such changes have led to rapid population growth and prompted serious infrastructure planning, which has in turn necessitated both public and private investment,” Mr Ryder said.
“Another attractive point of the region is its extensive tracts of vacant land, some of which is experiencing residential development while further sites are earmarked to accommodate 14,000 new residents by 2036.”
