The latest monthly Adelaide property market update, with Bronte Manuel

After an extended period of sparse listing levels, we’re finally starting to see a response from vendors trying to capitalise on strong selling conditions.

According to property market analyst CoreLogic, the volume of new listings to hit the market in Adelaide last month increased by 48.7 per cent compared with the same time last year.

As a result, total listing levels are down just 12 per cent year-on-year, a significant change from earlier in 2021 when listings had dropped by more than 30 per cent.

There are now more than 5600 homes for sale in Adelaide, including more than 2200 that have hit the market in the past four weeks.

The uplift in listing volumes is yet to have an impact on Adelaide dwelling values, however.

Our team has continued to report many instances where they have received multiple offers well above the top end of vendor expectations.

At TOOP+TOOP, we sold more than $102 million worth of property for the month at an average of $1.405m.

That included 31 sales of more than $1m, eight of more than $2m and six of more than $3m, including a $5.5m result.

CoreLogic data shows that Adelaide home values have risen by 21.4 per cent over the past 12 months, 6.5 per cent for the quarter and 2.5 per cent for the month.

Adelaide’s growth rate is almost identical to the national capital city increase of 21.3 per cent, which is the highest annual appreciation rate since June 1989.

By comparison, Hobart has experienced the highest annual growth rate at 27.7 per cent, while Melbourne’s increase of 16.3 per cent is the lowest.

Sales volumes here have also trended upwards, with 33.5 per cent more properties changing hands in Adelaide last month compared with the same time last year.

At a national level, transaction volumes were estimated to be 56.2 per cent above the five-year average, at 61,638.

While the spring selling season has delivered some outstanding results, it will be interesting to see if APRA’s increased serviceability buffer for new home-loan borrowers, introduced on November 1, has an impact on selling conditions.

The Christmas-New Year period is traditionally a quieter period for real estate in Adelaide, but early indications are that the market is likely to remain very strong for at least the first quarter of 2022.

Bronte Manuel