Bronte Manuel's Adelaide market update for December

There was certainly no slowing of the local property market as we drew to the end of 2020, with Adelaide consolidating its position as one of the nation’s star performers. 

While attendee numbers at our property inspections dropped by more than 30 per cent and digital traffic also slowed marginally, Team Toop still sold more than 50 properties for the month, with a total sale value beyond $40 million. 

That’s an exceptional result during a period that traditionally delivers fewer transactions. 

The December figures capped another strong year for our team, with a string of standout results where sale prices significantly exceeded vendor expectations. 

We sold more than $550m of property in 2020, including almost 250 properties that achieved a sale price beyond $1m and three that topped $4m. 

The December home value index released recently by property market analyst Core Logic certainly validated the positive data we gathered at Toop&Toop. 

Their data showed Adelaide recorded its fourth consecutive month of growth in December, with a 1.1 per cent rise taking the median dwelling value here to $468,544. 

Darwin recorded the highest monthly increase at 2.3 per cent, followed by Adelaide, Perth and Brisbane, which each recorded the same rate of growth. 

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Adelaide property values also rose 3.6 per cent for the quarter, the highest three-month growth rate here in 10 years.  Only Darwin, with a 5.5 per cent increase, registered stronger figures. 

For the 12 months to the end of December, dwelling values here grew by 5.9 per cent, the fourth-highest growth rate in the country behind Darwin (9 per cent), Canberra (7.5 per cent) and Hobart (6.1 per cent). 

June, when property values dropped by 0.2 per cent, was the only period of 2021 when Adelaide recorded a decline since COVID-19 was declared a pandemic in mid-March. Values in August were static. 

Adelaide dwelling values have historically been among the least volatile of the capital cities but 2020 provided a very different – and more positive - outlook. 

The ongoing buoyancy of the market is no doubt influenced by a combination of fewer listings and more buyers entering the market. For example, of the 1500 buyers we welcomed to property inspections in December, more than 20 per cent were first-time visitors to Toop&Toop listings.  

There’s no doubt South Australia has experienced particularly low stock levels against a relatively high uplift in first-home buyer participation compared with larger states like NSW and Victoria.  

While total stock on market across Australia was down 20.4 per cent on the equivalent period in 2019, the decline was even more severe in Adelaide, with listings 30.8 per cent lower year-on-year.  

That continues to create a scenario where demand often outweighs supply which, in turn, generates significant competition for suitable properties. 

Early indicators from January suggest more vendors may consider listing their homes in the first quarter of 2021 on the back of significant positive publicity about the Adelaide property market. 

However, with a large pool of eager buyers, there’s no suggestion dwelling values will decline in the short to medium term.

Bronte Manuel
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