Advertisement

Adelaide property values on the rise

Adelaide continues to buck a national trend in downward property values, with more than two thirds of metropolitan suburbs experiencing price growth in the six months to September, according to a new report.

Oct 02, 2020, updated Oct 02, 2020

PointData’s quarterly Lay of the Land report showed an additional 2 per cent of metropolitan Adelaide real estate experienced a price increase in the three months from June 31 to September 31.

This took the total proportion of Adelaide properties increasing in value in the six months to September to about 70 per cent, compared with 68 per cent in the six months to June.

The report also showed 25 per cent of the statistical neighbourhoods had increased by more than 2.5 per cent in value since March.

PointData CEO George Giannakodakis said not only had the proportion of property price increased in the last quarter but the South Australian capital had experienced accelerated value, demonstrating the property market’s improvement in the past 12 months.

“It’s only a slight increase in the area of Adelaide on a number of properties that are going up,” Giannakodakis said.

“But the number of properties going up at a rate above two and half per cent over those six months and above is a lot greater – a larger proportion of Adelaide is now accelerating at a faster rate.”

He said while Adelaide’s upward trend in the past six months defied a national trend, real estate markets across the country showed signs of recovery, coinciding with the easing of COVID-19 restrictions.

But prices in major cities on the east coast were still trending downward.

“Even though, on average across the eastern board, the big three capital cities are still falling in price, they actually have moved away from large falls and are only falling modestly,” he said.

“Adelaide is still showing signs of strong growth. The average is quite small per annum but it is still positive and growing at a faster rate compared to other cities.”

The PointData Spring Edition report draws sales data from Land Services SA and uses machine learning to turn big data into insightful property information across hundreds of 400-person sized statistical areas.

It showed strong growth in the city and inner eastern suburbs, as well as LeFevre peninsula, reversing declines in values seen in the previous period across the northern half of the peninsula.

Areas including Noarlunga and Christies Beach fell in property value.

The report said regions with falling values could be associated with impacts including an oversupply in new subdivisions or large-scale developments where land values had not increased quickly enough to keep up with asset depreciation.

The statistical data also showed areas which had recorded falls in value in the past six months were improving.

The report highlighted data sourced from SQM Research, which showed since the end of 2019 property listings in metropolitan Adelaide had trended downwards.

During the seasonal peak in November 2019 there were more than 18 thousand active listing across the month.

According to the report, this number typically dropped in December and January and experienced a resurgence by March.

It said the onset of COVID-19 restrictions prevented the listings boom observed in recent years.

Instead, activity remained between 15 and 16 thousand listings per month and dropped to a low of almost 14 thousand in August 2020.

This was 13.4 per cent less than August 2019 and less than 90 per cent of the five-year average for August.

Giannakodakis said while there were fewer listings than usual, demand exceeded supply.

“Relative to the volume of listings there is a stronger demand than there is supply and that’s why you’re seeing that upward pressure in the property values,” Giannakodakis said.

“There has been a strong recovery for listings. Not quite to the same levels that we had previously but nevertheless there has been a strong recovery.

“Spring itself is a time when people and real estate agents do list.”

Topics: property
Local News Matters
Advertisement
Copyright © 2024 InDaily.
All rights reserved.