This year is looking to be one of the best yet for the Adelaide property market. With interest rates at record lows and a bounce back in the local economy as the COVID-19 vaccine is rolled out, we are expecting a year of record price growth.
The year that was - 2020
House prices across Adelaide grew at their strongest rate in over a decade through 2020. We predicted this last year despite most market commentators declaring that prices would fall heavily.
The median price grew to $480,000 - a record high. Because the pandemic was managed effectively with very few lockdowns, Adelaide prices rose more than most other capital cities around Australia.
Forecasts for 2021
We are forecasting growth of 9% for house prices across Adelaide in 2021. This will push the median house price to just under $550,000 (see graph below - dots are forecasts). The first 6 months of the year will see buyers rushing into the market to purchase. The main factor driving this rush will be low interest rates, which will motivate first home buyers and investors to buy.
Toward the end of the year, and if the border opens, immigration could start again. This would see prices push even higher into 2022.
In particular, suburbs that have good fundamentals, including good quality infrastructure and close proximity to the city, are expected to grow the most over the next 12 months. Our top picks are:
Contact us for a full report with individual suburb forecasts and in-depth analysis.