Australian Property Market: A Window of Opportunity for Home Buyers and an Insight into Adelaide’s Liveable Rentals

The Australian property market is showing signs of recovery after a prolonged correction, and prospective tenants in Adelaide are presented with options that balance affordability and liveability. Based on two insightful articles, this blog post highlights current trends and insights into the property market in Australia.

Home Buying Opportunities in Australia’s Secondary Cities

According to a recent article by Kirsten Craze, Australian property prices are on the rise again, particularly in the secondary cities of Gold Coast, Adelaide, and Perth. This increase presents an opportunity for home buyers and investors to purchase before values climb back to their previous peaks of 2021 and early 2022.

As reported by CoreLogic, the monthly increase of 0.5% in overall dwelling values in May marks the third consecutive month of rising prices. Tim Lawless, CoreLogic’s head of research, said the luxury sectors in several Australian cities look ripe for recovery, emphasizing, “But these are also the markets that seem to be leading the upswing at the moment” (Craze).

Despite a 10-month campaign of interest rate hikes by the Reserve Bank of Australia, the upward trend continues. This has prompted Lawless to urge those aiming for the prestigious end of the market to seize the opportunity, stating, “For people trying to get into that quite prestigious end of the marketplace, they’ve got a good opportunity now to get in while prices are well below what they used to be.”

Knight Frank’s latest Australian Prime Residential Review identifies Gold Coast, Adelaide, and Perth as promising luxury markets for the year ahead, with prime real estate values performing strongly.

The Evolving Gold Coast Market

The Gold Coast has historically been known for market extremes, but according to Stephen Mutton, LJ Hooker network general manager, the city is evolving. “I’ve been based on the Gold Coast since 1997, and traditionally when the market boomed, everyone bought here, and when the market contracted everyone sold. Now we’re seeing an undercurrent that we won’t be as affected as we have been in the past” (Craze). This indicates a more stable and resilient market.

Adelaide’s Affordable and Liveable Rental Suburbs

Meanwhile, Adelaide’s rental market presents opportunities for prospective tenants to find affordable and liveable options. A recent PRD Real Estate report identified suburbs that offer rental properties with essential liveability factors, such as low crime rates and proximity to schools and amenities.

The article by Jessica Brown reveals top picks for houses and units in Adelaide, including Kilburn, Modbury, and Port Adelaide for houses, and Hope Valley, Glenelg North, and Parkside for units. PRD Real Estate chief economist Dr Diaswati Mardiasmo emphasized the balance between price and future rental supply, saying, “Because the problem with renting at the moment is tenants can’t find anywhere to rent, we wanted to focus on the project side.”

Australia’s property market is showing promising signs of recovery, with opportunities in the secondary cities like Gold Coast, Adelaide, and Perth. The evolving market landscape opens a window for savvy investors and home buyers. Meanwhile, Adelaide’s rental market is experiencing a trend towards affordable and liveable options in various parts of the city.

For investors, homebuyers, and renters alike, understanding these market trends can be the key to making informed decisions. By focusing on growth potential and balancing price with essential liveability factors, there’s a multitude of opportunities to explore in the ever-changing Australian property landscape.

References:

Craze, Kirsten. “Three Australian Cities Where the Window Is Opening to Home Buyers.” https://www.mansionglobal.com/articles/demand-is-raging-in-vancouver-leaving-sellers-firmly-in-the-drivers-seat-f62c11a4 

Brown, Jessica. “Adelaide’s most affordable and liveable rental suburbs revealed.” https://www.realestate.com.au/news/adelaides-most-affordable-and-liveable-rental-suburbs-revealed/