House prices remained resilient in Adelaide across the first quarter of 2019 despite weakness in the Melbourne and Sydney markets. While the weakness in prices has worried some, the actual rate of decline has been easing over the past three months. The 0.6% drop in March was actually the smallest of the month-on-month declines since values fell by 0.5% in October last year.
House prices fell across most of the eight capital cities, with Canberra values holding firm while Hobart values were 0.6% higher. Most of the regional areas, also recorded a fall in values. In contrast, regional Tasmania (+0.5%) and regional South Australia (+0.3%) bucked the trend.
National dwelling values have been trending lower over the past year and have fallen by 7% since the peak in October 2017. However, the national index still remains 16% higher compared to five years ago. Most property owners have seen substantial gains over this period.
Which suburbs have performed best in Adelaide?
The suburbs that saw the greatest price growth across 2018 are listed in the table below. Mile End is the most affordable, with a median price of only $309,000. Most suburbs listed are located between 5-10km from Adelaide's CBD and are positioned near major infrastructure projects, which will generate future growth.
Which suburbs provide the highest rental yield in Adelaide?
Salisbury was Adelaide's best suburb in 2018 with a high rental yield of 7.50%. The significant point to note for these suburbs is their low median prices (average of $225,000). The low median prices helps to push their rental yields higher with only modest rents.
Note: The above figures in the tables are based on a 2 bedroom unit.
Sources: CoreLogic, REA