This month's Adelaide property market update, with Bronte Manuel

While the property market has started to cool slightly in some Australian states, buyer demand for homes in Adelaide remains at peak levels.

Across the nation, dwelling values have grown by 2.7 per cent over the past quarter and 20.6 per cent over the past 12 months, down from the recent high of 22.4 per cent in the 12 months to January.

By comparison, the most recent data from property analyst CoreLogic shows Adelaide home values have stayed on a strong upward trajectory, with quarterly growth of 6.4 per cent, resulting in a 12-monthly increase of 25.8 per cent.

Put simply, the Adelaide property market is outperforming most Australian capital cities.

There is no doubt the relative sparsity of available stock has been a major contributor to price growth.

At the national level, total listings remain well below the average for this time of the year, as high sales volumes have seen around 1.2 sales for every new listing added to the market in recent months.

Sales volumes across Australia rose 37.7 over the past year, to an estimated 650,175, while transaction volumes through the month remained elevated at an estimated 57,427, 46.1 per cent above the previous five-year average for the same period.

In Adelaide, total advertised stock levels are down 21.6 per cent compared with the same time 12 months ago, though the volume of new listings hitting the market has shown marginal growth, up by 2.6 per cent.

While current advertised dwelling volumes are down, at TOOP+TOOP we have recently noticed increased inquiry from vendors who are considering capitalising on the strong selling conditions.

As a result, we are expecting a higher volume of properties to hit the market in the coming months.

The prospect of potentially more choice for buyers has not had an impact on our sales results, though.

On average, our team sold almost two properties a day over the past month, with an average sale price of $1.13 million.

We attracted more than 2700 attendees to our property inspections, with more than 20 per cent of those new to our database.

Our digital traffic grew, too, with monthly views on increasing by around 7000 to 126,000.

A number of our sales partners have been in the real estate industry for decades, and all agree they have rarely experienced such fierce buyer competition.

Another indicator that highlights the strength of the Adelaide market is CoreLogic’s Hedonic Dwelling Index, which shows property growth has been equally buoyant across all price points, ranging from 6.1 per cent in the lower quartile to 6.6 and 6.3 per cent for the middle and upper quartiles respectively.

Lending for property purchases also reached a record high, at around $33.7 billion across the nation. This included a record $11 billion to investor purchasers. Despite these record highs, growth in lending slowed to 2.6 per cent through the month, down from 4.4 per cent in the previous month.

Bronte Manuel
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