Melbourne stagnated<\/a>, February\u2019s CoreLogic national Home Value Index released on Tuesday (1 March) showed Adelaide to be insulated to slowing growth conditions experienced by the other capitals.<\/p>\nDwelling values were up 1.5 per cent in February and 6.4 per cent over the quarter, placing it second only to Brisbane on both counts.<\/p>\n
Just weeks out from the South Australian state election, Committee for Adelaide CEO Bruce Djite has been sharing the organisation\u2019s vision to grow the SA population to two million by 2030, up from 1.37 million now.<\/p>\n
The implications for the state\u2019s property market and housing supply would be profound.<\/p>\n
\u201cWe are seven per cent of our nation\u2019s population, but we want to attract at least 10 per cent of Australia\u2019s total migration intake per annum,\u201d he said.<\/p>\n
\u201cWe are 5.5 per cent of gross domestic product but we want to attract 12 per cent of foreign direct investment,\u201d he said.<\/p>\n
The Committee is calling for a $500 million High Growth Fund to attract capital and talent, creating more jobs and opportunities for investors.\u00a0<\/p>\n
But migration and all the stimulus it brings could get a boost even earlier as state and international borders are now open and South Australia competes to attract new and returning residents.<\/p>\n
![\"Index](\"https:\/\/www.apimagazine.com.au\/media\/1001726\/fig1_national_median_table.jpg\")
<\/p>\n
Source: CoreLogic<\/p>\n
National Property Buyers director Katherine Skinner said she expected the international border opening to have more of an impact on the demand for housing than the interstate borders, both for purchases and the extremely tight rental market.<\/p>\n
\u201cThere have been limited options for international relocations over the past two years, so we are definitely anticipating a strong influx through 2022 of the people finally able to make the move,\u201d Ms Skinner said.\u00a0<\/p>\n
\u201cWe are already seeing lots of clients come on board looking for assistance upon arrival, so this is already starting to filter through.<\/p>\n
\u201cSince state borders opened, we have found more interstate buyers are ready to put their plans of relocation into action now there are no restrictions in place.\u00a0<\/p>\n
\u201cThis will without a doubt place extra pressure on demand for the short term,\u201d she said.<\/p>\n
Removal of state border restrictions could translate into good news for Adelaide\u2019s retail in the CBD.<\/p>\n
Herron Todd White said \u201ccautious optimism\u201d had descended on the city\u2019s retail sector as it continued to perform steadily, with average rents on the rise and strong investor demand.<\/p>\n
\u201cIt is expected that retail markets will see a recovery as the COVID-19 situation improves, with currently 95 per cent of the South Australian population double-vaccinated and the booster rollout well underway.\u201d<\/p>\n
\u201cThe recent removal of state border restrictions should provide additional economic support to the retail trade sector as interstate business and travel resumes.\u201d<\/p>\n
Momentum maintained<\/strong><\/p>\nSteady demand for Adelaide\u2019s relatively affordable housing was reflected this week in a record auction clearance rate of 85.4 per cent.<\/p>\n
According to CoreLogic, Adelaide recorded the highest preliminary auction clearance rate (85.4 per cent), followed by Canberra (75.7 per cent) and Brisbane (72.7 per cent). \u00a0<\/p>\n
Adelaide is also leading the pace for gains in units, with a monthly rise of 1.5 per cent for Adelaide, followed by Brisbane (1.4 per cent).<\/p>\n
CoreLogic Director of Research Tim Lawless said the cities where housing values are rising more rapidly continue to show a clear lack of available properties to purchase.<\/p>\n
\u201cTotal listings across Adelaide and Brisbane remain more than 20 per cent lower than a year ago and more than 40 per cent below the previous five-year average.<\/p>\n
\u201cSydney and Melbourne have shown the sharpest slowdown, with Sydney (-0.1 per cent) posting the first decline in housing values since September 2020,\u201d he said.<\/p>\n
\u201cConditions are easing less noticeably across the smaller capitals, especially Adelaide, Brisbane, and Hobart, where housing values rose by more than 1 per cent in February. \u00a0<\/p>\n
Median price record<\/strong><\/p>\nThe Real Estate Institute of South Australia (REISA) said data from the valuer-general in December 2021 revealed unprecedented double-digit growth in more than 300 suburbs.<\/p>\n
REISA CEO Barry Money said the median SA house price increased by a hefty 16.8 per cent from the same December quarter in 2020, reaching a new record of $515,000. The median house price in metropolitan Adelaide reached $600,000.<\/p>\n
\u201cVolume-wise we have seen 1100 more houses sold in South Australia in the quarter ending December 2021 than in the same quarter last year,\u201d he said.<\/p>\n
Sales of units and apartments were picking up, with close to 700 more units sold in the fourth quarter of 2021 than the corresponding period last year. The median price similarly rose by nearly 8 per cent.<\/p>\n
\u201cIn metro\u2019 Adelaide, we have experienced an unprecedented 17.6 per cent increase in the median house price year-on-year, with one suburb recording an increase of more than 100 per cent \u2013 St Peters recorded a 107.5 per cent lift in the past 12 months \u2013 taking the median house price of $1,060,000 to $2,200,000,\u201d Mr Money said.<\/p>\n
Ms Skinner said supply was still extremely low, sitting 23.9 per cent lower than this time last year.<\/p>\n
\u201cCombined with purchasers looking to lock in low interest rates before they rise at some stage in the near future, low supply is really putting pressure on the property prices to continue heading north,\u201d she said. \u00a0<\/p>\n
She said she believed demand would continue to outweigh supply for 2022 and add pressure to prices across the board.<\/p>\n<\/p><\/div>\n