The property market seems to be settling down across Australia, but it’s still very strong with very little change here in the greatest state on earth — and obviously we’re not the only ones who think South Australia is the greatest, with many of our interstate neighbours making the move down south!
We’ve been peppering our friends at Century 21 with questions about the market for months now, so we finally decided to stop being selfish and share some of their answers with all of you, from their offices across the state.
Whether you’re thinking about buying, selling, renting or investing, we hope you get a little nugget of information out of this market update!
What trends do you see in 2023?
The city of churches has made its mark on the nation’s property market with experts suggesting the city is well ahead of the game already for 2023.
Adelaide’s median dwelling value is around $650,000 which makes it the third most affordable city behind Perth and Darwin. Adelaide was by far the best performing capital city in the country in 2022.
Interstate migration is at its highest, in part due to the severe lockdowns seen in Victoria in recent years. The trend has further swelled because of the affordable median price point in the SA property market compared to that of the Eastern Seaboard. It looks like our interstate pals are realising that less than a one or two hour plane ride away, there’s more freedom, lower property prices and far less congestion, yet lots of opportunity.
This means that there is still an increasing shortage of properties for sale and rental, due to the influx of interstate and overseas residents. However, there is still hope that by the end of 2023, the market will have evened up!
And as an added note if you were looking to branch out to Island life, property on Kangaroo Island is still in good demand, particularly in the residential housing areas of Kingscote, Penneshaw, Island Beach and American River.
Is it a good time to buy, and is it a good time to sell?
As there are not enough homes to keep up with the population and household growth in Australia, it is both a good time to buy and sell. There have been one million new households formed between the 2016 and 2021 Census and there is not sufficient new housing to accommodate these households.
Further to this, the Australian government is on track for net migration of more than 300,000 people this year (which is more than 25% higher than Treasury forecasts). These people will need housing, which means demand will continue to grow.
2023 is offering both the potential to sell and capitalise on the last two years of growth, and also some good buys for the astute buyers. However, there is slightly less competition in the market — mostly due to the rising interest rates, although demand remains strong across the S.A market, just slightly easing from the unpresidented market experianced throughout 2021 and early 2022.
Is it a good time to invest in a rental property?
Yes, investment property is in huge demand due to the severe shortages of available residential property to lease. We are at our lowest permanent rental management numbers in a decade and there are still people in desperate need of permanent rental accommodation.
Rental prices are still increasing too, so if you have been thinking of purchasing an investment then now is the time — and make sure your property manager reviews the rent each year, to ensure you’re achieving the best return on your investment.
Predictions for interest rates, and how do they impact the property market?
All of the “Big 4” banks estimate at least one or two more rate rise in 2023, expecting to hit around 3.5% by the middle of 2023. However, economists believe that interest rates could in fact go slightly down by the end of the year.
While the rates are expected to rise again, there are regional properties that are still very affordable, so rate rises may not impact those market prices — but it may extend how many days properties are on the market before they sell.
What areas/suburbs in SA are likely to perform well in 2023?
The suburbs in the Adelaide market that are expected to continue the upward pressure on prices in 2023 include:
- Brooklyn Park
- Christies Beach
- Elizabeth Vale
- Mt Barker
There’s a trend of moving further from the city for more space, open air and a better lifestyle, so beachside suburbs and rural acreages like in the Barossa will likely increase or hold very steady.
So there you have it folks – take these insights with you as you dive back into the world of property!
If you’re looking to buy or sell in a particular area, reach out to our friends at Century 21 located across SA. They know their stuff!
C21 City, Adelaide
C21 SouthCoast, Aldinga Beach
C21 Bayside Brighton, Brighton
C21 The Bay, Glenelg
C21 Barossa, Kapunda and Nuriootpa
C21 Kangaroo Island, Kingscote,
C21 Western/Coastal, Lockleys
C21 Golden Estates, Mawson Lakes
C21 Central, Millswood
C21 Southern, Morphett Vale
C21 Coast To Vines, Noarlunga
C21 NorthEast, Northfield
C21 Top of the Gulf, Port Augusta
C21 Pirie Properties, Port Pirie
C21 City Inner North, Prospect
C21 Paterson Properties, Reynella
C21 Property People, Salisbury South
C21 Beachside & Lakes, Semaphore
C21 First Choice In Real Estate, Tea Tree Gully