No ScoMo bounce or interest rate boost for Adelaide, but it is a market that probably didn’t need it.
While Adelaide didn’t see the heady highs that we saw in Melbourne and Sydney during the boom, it kept powering ahead when both those markets started declining. Adelaide was under the same funding constraints as everyone else, but it had little impact.
Similarly, Adelaide didn’t see the same boost in activity post Federal election or interest rate cut that we saw in Sydney and Melbourne. Continued steady growth and few surpises are expected.
Like most of Australia, buyers are flooding in to premium areas in Adelaide at the moment. And these buyers are likely to include a lot of investors. We continue to see high levels of search coming out of Melbourne and Sydney looking at premium Adelaide.
What this has led to is a lopsided rental market. While buyers want premium, we are seeing high views per listing from renters for Adelaide’s more affordable suburbs. The most in demand suburbs from renters right now are Edwardstown, Morphett Vale and Andrews Farm.
The other factor likely driving this is the growth of Adelaide’s manufacturing sector – jobs growth across a wide range of incomes is creating demand at all rental price points.