PRP Wealth Management Renmark (08) 8586 4132
& PRP Accounting Renmark (08) 8586 6644

PRP Wealth
Management Adelaide

(08) 8232 9900

Renmark Wealth (08) 8586 4132

Renmark Accounting (08) 8586 6644

Adelaide Wealth (08) 8232 9900

Property Market Update – Adelaide

July 2015

  • Unemployment in South Australia is significantly higher than the national average, at 7.1 %, but it remains below the state’s long term median of 7.6%.
  • Growth in the house market over the last 12 months has been a moderate 3.20%, however this is below its 20 year long-term average rate of growth (6.80% per annum).
  • Growth in the Adelaide unit market failed to keep pace with inflation over the last 12 months.
  • Rental yields in the house and unit markets have increased in the last 12 months, by 4.11% and 1.64% respectively. Yields in both markets are currently above the national average, but they are probably not sufficient enough to drive investment activity.
  • Affordability in Adelaide is amongst the best in the nation, for home ownership and rent.
  • It currently takes around 30% of the median household’s after tax income to make loan repayments on the median house, while renting requires 25% of after tax income.
  • The affordability position is further improved in the unit market, where the median household uses around 22% of after tax income to meet home loan repayment.
  • Calculations estimate that there is an oversupply of housing stock of about 4,000 dwellings.
  • 5 year predictions indicate that house and unit prices will struggle to keep pace with inflation.
  • Overall, this is not a market for investment unless you are able to identify an attractively priced renovation property.