Adelaide’s residential property market is a rising star and outperforming all other mainland capital cities – including Sydney, Melbourne and Brisbane – in terms of stability, according to independent analysis by national valuer Herron Todd White (HTW).
The HTW national property clock for October, which rates markets based on sales activity and growth, shows Adelaide’s market is rising towards the peak as buyers show confidence in the city’s strong history of stable growth which has weathered the ‘peaks and troughs’ seen on the eastern seabord.
It comes as national real estate company Domain Group reports Adelaide’s residential investment market remains very healthy, with house and unit rents growing 2.7% and 3.3% respectively, over the year to September.
By comparison, rents in Sydney recorded their biggest annual drop in 15 years (down 4.5% for houses, and down 4.6% for units) over the same period.
Treasurer Rob Lucas said the results were further indication of the strength of Adelaide’s residential property market.
“The Government welcomes both reports, which endorse Adelaide as a leading light on the national residential property stage which is attracting good levels of investment and delivering strong, stable returns,” said Mr Lucas.
“At a time when the Property Council and its supporters are trying to talk down the economy, we have yet more independent analysis which shows why there’s every reason to be positive.
“Claims that the Government’s land tax reforms had destroyed investor confidence and were already forcing many investors to sell properties are clearly wrong.
“The Government’s proposed land tax reforms, which reduces the top land tax rate from a national high 3.7% to just 2.4%, will also further drive our competitiveness and investment attraction, while boosting business and consumer confidence.”
The median weekly asking rent for a house in Adelaide, according to Domain Group, is now $385 (up from $375 in September 2018), with the median weekly asking rent for a unit up $10 to $310.
The Adelaide Hills, Barossa Valley, Mildura and Mount Gambier have also been earmarked by HTW as rising markets.