Adelaide is one real estate market in Australia that is witnessing steady growth and stability in spite of other major property markets in the country reeling from a whole host of factors including lowering clearance rates, stricter credit regulations and market fluctuations. Homes in Adelaide have witnessed growth in overall values annually over the last 5 years which has surpassed inflation to the tune of 2.5% percentage points every year. Median home prices in Adelaide have gone up by roughly $7, 000 and clearance rates are also higher at 47% than the 39% national average.
For October 2018, there were 484 properties auctioned in Adelaide and these figures have remained steady for a long time. At the same time, new and total listing volumes have increased by around 3% in Adelaide for the current year till September. The city has been safeguarded from the overall market downturn by the owner-occupiers who have a higher share in the housing market. Adelaide home prices were never spurred by investors and speculative activities and this explains its stable growth over a period of time.
Additionally, housing values have gone up due to increased demand in Adelaide which has been fuelled by job growth and higher salaries. There is higher migration for professional purposes which is also boosting housing demand. The unemployment rates have also come down in Adelaide and this has been reflected in the state of the Adelaide real estate market. South Australian zones have seen economic growth driven by private investments in commercial sectors and increased civil engineering constructions. Employment levels have also grown due to huge projects like the submarine development $50 billion Naval Group contract and $35 billion ship building programme of the Government. Migration to Adelaide has increased by roughly 1% and this has also impacted housing demand overall.
As per the latest forecasts, the housing market will see growth of 2% in Adelaide next year and the same growth momentum could be sustained all throughout the year 2020. This will be driven by growth in population and continued economic progress. Industries in Adelaide that have the maximum potential for growth and employment generation include global education, tourism and agribusiness.