Thursday, April 23, 2015

Adelaide... the nation's good news story!

This week Dr Andrew Wilson, Senior Economist for Australian Property Monitors (APM), visited Team Toop to present the latest statistics and trends which are impacting the Australian Residential Real Estate Market. 

It was a very interesting presentation, which was part of a national tour looking at the wider Australian housing market. The presentation also drilled down into how the Adelaide property market is fairing compared to the rest of the country. 

With Dr Wilson's first slide titled: 'Adelaide rises – and rises' I was very excited to see what was to follow... 

Out in the field we have been feeling this rising buyer momentum over the last six months. Demand from buyers is high, interest rates are at all-time lows, property is moving quickly and our ToopVault sales are on the rise. This all means that properties are selling before they are even publicly released.

Every weekend our team captures information through our sophisticated live open inspection tool (VirtualAgent). It was comforting to see that the Team Toop intel we had captured for the same period of time was very similar to the data and trends that were recorded on the larger scale by APM. We believe that with our large sales team and our wide coverage across Adelaide that this information we are capturing each week is really valuable to share with our clients, and these similarities in findings have really backed this up. It demonstrates that our live intel allows us to provide our clients with a really good finger on the pulse of what is happening in our market right now, without the delay that comes with gathering and distributing these national statistics. 

Looking at both our intel and the national findings for the last quarter, one thing is clear... Adelaide's growth is very promising! 

Our property prices are rising modestly, but consistently, and it is grabbing the attention of investors across Australia. According to the National APM figures, currently 40.2% of purchasers are investors, which has increased from last year! The stable solid yields are making property in Adelaide more attractive than the current deposit rates, and could be a contributing factor as to why Adelaide investors are turning to property. On the ground our team is seeing the effects of this and in some pockets, such as Norwood and Adelaide, investors are making up 75% of the buyer interest at some properties.

Adelaide's high end market has been the standout over the last year with the largest growth in property prices. The high end market has risen 9.7% in the last year and is expected to rise even more with the stock market, as well as consistent high demand from buyers wanting to move into this area of the market. 

Property prices are rising in Adelaide and this is set to continue. We are still the most affordable mainland capital city in Australia providing Adelaide buyers with some great opportunities. Looking into the next year, experts are predicting Adelaide prices will show solid growth again, with a 5% increase. All of these factors are getting the economists excited and nick-naming Adelaide as 'the nation's good news story' right now! 

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