According to Hotspotting property analyst, Terry Ryder, Adelaide is emerging as the dark horse in the national property market – with expected house price growth of up to nine per cent and middle and low-market suburbs to become the star performers.
Addressing property experts at an industry seminar last night, Mr Ryder said South Australia had impressed with its steady performance in the past four years, recording between 8300 and 9500 dwelling sales over the past 19 quarters.
It now also counts 71 growth markets – the highest of any national capital city.
“Adelaide is the most boring market in the nation right now but at the same time is the one we think will surprise people in the year to come,” Mr Ryder said.
“In fact, in the Summer 2018 edition of our Price Predictor Index report, Adelaide ranks as the number one capital city in Australia in terms of the number of suburbs with growth markets.
“That puts it ahead of Sydney and Melbourne, and Brisbane, as well as the recovering Perth market.”
While Adelaide-wide house price growth has been steady at one to two per cent, Mr Ryder said generalised figures had long disguised individual areas which had done better.
These include Adelaide’s “millionaire suburbs” which have recorded major growth in their median house prices in past 12 months.
“Uplift in the premium market is often an early signal of a strong market upcycle,” Mr Ryder said.
“Kensington Park, St Georges, Henley Beach South, Hyde Park, and Hazelwood Park all have median prices above $1 million and have had median price growth of 20 per cent or more in the past year.
“Other upper-level suburbs like Glenunga, Norwood, Kensington Gardens and North Adelaide have had growth above 10 per cent.”
But the growth is not confined to the top end, Mr Ryder said.
“There are suburbs with growth above 10 per cent spread across all price ranges, including Blackwood (up 15 per cent to $575,000), Royal Park (up 14 per cent to $445,000) and Semaphore (up 12 per cent to $690,000),” he said.
“One precinct displaying good growth comprises the Glenelg suburbs, with Glenelg South up nine per cent to $1,390,000, Glenelg North up 12 per cent to $730,000 and Glenelg East up 21 per cent to $875,000.
“This reinforces the reality that outperforming areas can be found even when the overall market appears to be moderate.”
Local Government Areas have also seen good growth, with Adelaide now counting nine municipalities which have five or more suburbs with rising sales trajectories. That’s compared to only seven in the previous quarter.
“This means the growth momentum is broadening,” Mr Ryder said.
“The leading precinct, with 12 growth suburbs – which makes it a nation-leading market – is Port Adelaide Enfield – which is likely to attract growing interest as the massive project to build Navy vessels unfolds.
“Upwardly-mobile markets in this LGA include Blair Athol, Broadview, Clearview, Dernancourt, Enfield, Greenacres, Hillcrest, Klemzig, Lightsview, Northfield, Royal Park and Semaphore.”