Property values in South Australia continue to creep upward across the board, with both city and country locales providing investors with solid returns.
The Adelaide property market commonly referred to as “a sleeping giant” appear to be finally waking up as investors discover its bargain offerings. In the three months to July 2007, property values increased by 4.07% in regional South Australia and 3.44% in the Adelaide CBD, according to Residex data.
REISA President Mark Sanderson said that median house price in Adelaide has virtually tripled in less than 11 years, up from an average of $106,500 in November 1996 to the current median of $325,000.
Rental yields across the state are also healthy at around 4.5%, and vacancy rates remain low at under 1% in the Adelaide CBD.
“We are [nationally] still well below what is regarded as a natural vacancy rate at 3%, and we’ve been below this mark for three years now,” Sanderson says. “Well-maintained properties will surely move at the right rental rate.”
Sanderson believes that for investors seeking affordable property, South Australia represents unprecedented value in the current market.
“The market is as strong as it was five years ago,” Sanderson says.
“Properties are selling as soon as they hit the market, and demand from buyers is strong.”