Based on recent strong transaction numbers, Adelaide has been identified as the number one growth city in Australia, with more suburbs having rising levels of sales than anywhere else in Australia.
The latest Hotspotting Price Predictor Index has revealed that 47 suburbs in Adelaide had rising sales activity. Report author Terry Ryder said strong or rising transaction numbers meant increased demand and frequently led to price growth.
The number of suburbs with a lift in sales had dropped in Melbourne to 33 and Brisbane to 29. Growth markets had “vanished’’ in Perth with only one suburb, Byford, recording transaction numbers which were “rising steadily.’’
Sydney also didn’t fare so well – with only six growth markets. “It is now difficult to find suburbs with growing markets across metropolitan Sydney,’’ the report said. Sales numbers dropped significantly in Darwin which only had two growth suburbs.
“The total sales in the June 16 quarter were the lowest in the past five years and less than half those peak levels of 2014,’’ it said. The report also revealed that Tasmanian markets were strong with Hobart’s momentum rising, as was Launceston and Devonport.
“Mostly commentators look at the median price growth as a barometer (and in that) Sydney stood out and Melbourne as well but places like Adelaide haven’t so much,’’ Mr Ryder said.
“But within Adelaide there have been pockets, sub markets, that have done a lot better than those generalised figures that describe the whole city.
“There have been areas in Adelaide that have had double digit growth in median prices in last 12 months on the back of rising sales activity and now in terms of the number of suburbs with rising markets it actually is the number one city.’’
Mr Ryder said Sydney and Brisbane now had “danger markets’’ particularly apartment markets where there had been quite a big drop off in the number of sales.
“Hobart is doing well, the Tasmanian economy has improved it has still got a way to go but it is definitely better than it was and also investors are to a certain extent looking at Hobart and noticing it has got the cheapest prices, the lowest vacancies and the highest rental yields among the capital cities so its prices are very attractive.’’
Mr Ryder said Hobart topped polls in terms of cities that investors were targeting now. While Perth results were very poor Mr Ryder said that could be a sign to some investors that now was a good time to buy.
“The smart investors buy when markets are down and it would be a really good time to be looking in Perth because it is pretty much at the bottom,’’ he said.
“You can buy at really good prices without competition from other buyers. The smart counter-cyclical investors would see now as an opportunity for Perth because we know it has got a history of being a strong city and we know it will come back.
“We are now starting to see almost daily better news about the resources sector and commodity prices particularly for coal, but also for iron ore are rising and if that continues we are going to see some revival.’’
Glenelg North (SA)
Zuccoli (NT) #
# Rising sales in this suburb reflect new house-and-land or unit releases
ASHMORE, Gold Coast QLD
BELLARA, Moreton Bay QLD
BIRKDALE, Brisbane QLD
CARRARA, Gold Coast QLD
CORIO, Greater Geelong VIC
DUNLOP, Belconnen ACT
GOOLWA, Alexandrina SA
INVERLOCH, Bass Coast VIC
HIGHLAND PARK, Gold Coast QLD
KINGSTON, Kingborough TAS
LARA, Greater Geelong VIC
LEOPOLD, Greater Geelong VIC
MT BARKER, Mt Barker SA
MT GAMBIER, Mt Gambier SA
NAMBOUR, Sunshine Coast QLD
NELSON BAY, Port Stephens NSW
NERANG, Gold Coast QLD
Source: Hotspotting Price Predictor Index Sept 2016
Article credit: news.com.au