Australia is one of the established countries in the world looking at how well its economy performs. It has many cities that function as cultural, economic, and tourist destinations and they do an excellent job of boosting the country’s image.
Adelaide is one of these cities and the capital of the state of South Australia. It is the fifth most populous state and has a vibrant economy, mainly driven by the medical sector and defense industries.
It is also an educational center, with many institutions of higher learning decorating its vast landscape.
If you want to move to Adelaide and take part in the Adelaidean culture, you should understand its property market.
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The State of Adelaide’s Property Market
According to property valuers in Adelaide, the city is one of the most vibrant when it comes to the real estate sector. The median property prices have appreciated by 14% in a decade according to Wikipedia, making it one of the best areas to invest in, if you want to buy into the property market.
At the moment, the median price for a housing unit ranges between $400000 and $495000. While the figures are decent, it is still trailing behind other major cities in the country. However, projections put the Adelaide market’s growth to hit the $550000 mark by 2022.
So how does the value of Adelaide compare to the other cities?
Adelaide vs. The Major Cities
The other cities that Adelaide competes with in Australia’s realty sector include Sydney, Perth, Brisbane, and Melbourne. These cities register high performance in the real estate industry, with Sydney being the best when it comes to property prices.
As of 2016, Sydney had the best median house price at over $1000000 according to Homely. This figure is a representation of the growth of the property market, with cities such as Melbourne and Perth trailing at $773000 and $560000, respectively. Brisbane’s median house price is closer to that of Adelaide at $521000.
At a median of $495000 on the higher side, Adelaide and Brisbane are some of the most promising markets that attract a lot of buyers and investors.
The two cities will shape the Australian realty industry as their economies grow and shaping the southern and eastern parts of Australia.
Why the Adelaide Sector is One of the Most Promising
The capital of South Australia is very vibrant and attracts players from different parts of the world. To understand the dynamics of the real estate sector, you need to have a clear idea of its population make up.
Youth from 21 to 35 years are the most dominant age group and make almost 37% of the city’s population. They serve in the vast medical and defense sector, which characterizes the economy of Adelaide.
A considerable number of this demographic also boosts the educational sector, another significant force in the cities financial scene.
Effects of the 2020 Recession
2020 has been one game-changing year, characterized by an economic slump. The larger cities are the ones most affected, primarily when you focus on the property sector.
Experts predict that the recession will lead to a 50% crash in the realty sector which will tremendously affect Sydney and Melbourne.
Earlier speculations suggested that Brisbane and Adelaide would be the least affected by the recession, due to the COVID-19 pandemic.
While the effect may not be that devastating for Adelaide, it may counter its growth plans, where it sought to reach the $550000 tag in median housing costs by 2022.
The Role of a Property Valuer in Adelaide
A property valuer is a right person to look for when you want to get a decent picture of Adelaide’s real estate sector. They are the ideal professionals to seek services from if you are either a client or an investor.
They give you a historical analysis of the city’s property values and their projections in a few years. They also provide advisory services of the right places to invest in or get a decent estate.
Final Word
Adelaide is one of the most significant economic hubs in the southern region of Australia and takes pride as the fifth most populous state. Its health sector is one of the biggest employers and forms the foundation of other industries such as real estate.
For a while, the real estate scene has been booming, and Adelaide will be a major attraction for investors in a few years. The 2020 recession may slow its plans; however, it will get back to its feet once things get to normal.
While its median housing prices may be the least among the top five Australian cities, it has much room for growth to make it one of the best in the future.
