The Adelaide property market has maintained its upward trend over the past few months. Prices are continuing to rise and buyer demand remains very high. However the availability of suitable investment stock on market remains low.
QPIA in Adelaide are seeing interstate investors flock to our city in droves. And according to many locals, they are driving up property prices!
Real estate agents across Adelaide are reporting that is not uncommon for over 50% of enquiries on a listing to come from interstate investors and buyer groups. The majority of whom being from Sydney and Melbourne, where prices are starting to flatten. Investors are looking for value in other markets.
Following the recent interest rate rise there has very slight reduction in urgency within the Adelaide market, but certainly not enough to slow things down.
We do have to consider that the last time we saw an interest rate rise saw was back in 2010. So a whole generation of Australian home-owners have never experienced an interest rate rise. Many may be a little rattled by this.
So, aside from amazing food, wine and lifestyle… why has Adelaide become so popular?
Adelaide QPIA, Adam Hindmarch says “affordability is a strong motivator for many investors.”
In the northern suburbs you can still buy a standalone house in the $300k’s! In the southern suburbs there can also be ‘bargains’ in the low $400k’s.
But, as with every investment there is definitely an element of buyer beware! Investors need to understand the location and its inherent risks. Rather than just ‘investing in Adelaide.’
Adelaide Rental Property Squeeze
Rental conditions in Adelaide are extremely attractive to investors. Vacancy rates are around 0.6% and according to SQM research. Rents have risen by 18.9% in the 12 month YTD.
This means investment properties are less likely to be vacant and are generating more revenue, exactly what property investors want to hear!
Property managers are reporting that rental demand is ‘through the roof’ and some properties are being tenanted in minutes, not days or hours!
It is not uncommon to have 70+ people attend an open inspection and over 30 applications submitted on an average 3 bedroom home.
Adelaide QPIA are were told by a number of agents that brand new and renovated properties achieving premium rents.
Although this is the perfect outlook for property investors, a number of agents have described Adelaide as being in a ‘rental crisis’ – with no sign of easing.
On the supply QPIA Adelaide, Adam Hindmarch says many investors are still choosing to build an investment property. This is despite delayed timeframes and increased construction costs.
Local developers and builders have reported continued investor demand for quality, turn-key packages between $450k to $600k.
Adelaide is also seeing more opportunities emerge with dual key properties, where two separate homes are built under the same roof.
QPIA Adelaide, Adam Hindmarch explains “dual key properties provide investors with a dual income stream and help to reduce risks.”
They also put a roof over the heads of two families and helps ease the current rental squeeze.
So It seems like the secret is out – Adelaide is a great place to invest in property!
QPIA ADELAIDE INFO
can be found here: https://www.pipa.asn.au/wp-content/uploads/PIPA-Adviser27.pdf