Confidence is building up in Adelaide’s real estate market as prices, rental demand and investment returns continue to flourish
The Real Estate Institute of South Australia’s (REISA) new Market Update report, released in conjunction with Adelaide Bank, showed that all sectors of the Adelaide market were performing strongly.
“Many agents have been able to sell properties without even advertising them, or after only one open inspection, which is a very strong indication of how well placed vendors are in today’s market,” says Robin Turner, REISA President.
“Vacancy rates are still below 2% and rental prices are catching up after we had one of the tightest rental markets in decades earlier in the year.”
Andrew Donnelly, CEO of Braxton Chase, says growth in South Australia’s resource and manufacturing sector has breathed new life into the state’s economy, which he believes is poised for strong growth in 2008.
Donnelly says strong international migration and a number of infrastructure projects, such as the Northern Expressway, new water and energy facilities, city tramway extensions and major hospital capital works, have also played a role rekindling Adelaide’s relatively dormant property market.
“Adelaide traditionally lags a year behind the Melbourne market, so if the above-mentioned factors and history prove right, growth is likely to be prevalent in Australia’s most affordable mainland capital during 2008,” Donnelly says.