Adelaide’s property market is tipped to reach new heights. This capital city is beginning to see unprecedented interest from interstate property investors.
Property prices in the South Australian capital have continued to grow throughout 2018, outperforming the Sydney and Melbourne markets1. Our first Adelaide property, in St Peters, was one of our strongest performing properties in our most recent valuations, conducted in June 2018. Its value increased by 6.05% in just under 10 months.
Why Adelaide?
Confidence in the Adelaide property market remains strong, with the capital city forecasted to continue to deliver solid growth2. This confidence is being driven by a rapidly growing economy and strengthening rental market3, which is drawing the attention of interstate investors in search of higher yields and more modest prices.
Adelaide has managed to evolve its economy from being dominated by manufacturing into one of the most diverse in the nation, including a focus on future industries such as space exploration, renewable energy and high-tech manufacturing. This coupled with great schools, declining unemployment and a thriving nightlife, has seen Adelaide develop into one of Australia’s most liveable cities. The Economist Report has ranked Adelaide the 5th most liveable city in the world for the past 6 years, further validating its new standing, as one of the nation’s leading capital cities.
Our newest Adelaide property
With all of this in mind, the BRICKX property team began an extensive search for a second Adelaide property, which brought them to 11 Arnold St, Kingswood our new property. This quiet family-oriented suburb is a stone’s throw from local shops and restaurants and only a 15-minute drive from the Adelaide CBD. With 20-year historic growth for the Mitcham region of 7.54%4 and a low Initial Brick Price of $47, our property team believes Arnold St, Kingswood stands to be a strong investment opportunity.
Nerida Conisbee, member of the BRICKX property team and Chief Economist for REA Group, shared with us her thoughts on the Kingswood acquisition. Affirming that Kingswood “Is one of the most popular suburbs on realestate.com.au, experiencing views per listing far higher than almost every suburb in Adelaide. High demand suburbs typically achieve greater median house price growth than the average for a city”.
References:
- (Adelaide +0.4%)(Sydney -2.6%)(Melbourne -1.8%) – figures from CoreLogic Home Value Index (January to June 2018)
- NAB Residential property survey Q2-2018 (page 3)
- PPA Adelaide Capital City Review, Edition 15
- CoreLogic SA2 Index (for Mitcham region that includes Kingswood). Past performance is not an indicator of future performance.
