Welcome to 2019, if you are like me I’m sure your New Year’s resolutions are well underway, and you wholeheartedly believe this is the year they will last beyond February.
A quick recap of 2018, #scomo was a thing, Meghan Markle went from a lovable character on Suits to the lovable Duchess of Sussex, Bitcoin fell faster than the Sydney property market and a nation rejoiced as West Coast won the AFL Grand Final because anyone but Collingwood.
So what to expect?
The theme of media outlets in 2018 seemed to be the falling house prices across Australia. Sydney & Melbourne led the market decline, but good ol’ Adelaide bucked the trend to record an increase of 1.3%, Domain’s Property Price Forecasts predicted Adelaide prices to grow 2 per cent in 2018 and a further 2 per cent by 2020.
Adelaide will do what Adelaide wants and that is its own thing (sorry Starbucks). Of course, nobody can predict the future, and should a mortgage rate rise come earlier than expected, or the banks impose tighter lending restrictions, then property prices could slightly decline.
Auctions will undoubtedly kick back into action towards the end of January or early February. Adelaide auction clearance rate were around 48% for the month ending December 2018.
Should the Royal Commission fallout result in even tighter lending conditions, buyers may require additional time to secure an unconditional contract.
So which way will Auctions go in 2019? Adelaide isn’t traditionally the strongest auction market in the country. However, CoreLogic’s Research Team reported Adelaide and Canberra were the only cities in which sales volumes rose over the year, which may prove advantageous for sellers.
Adelaide’s strong yields have led to an increase in interstate buyer activity with investors appreciating the removal of stamp duty tax on commercial transactions.
The State Government’s land tax relief announcement, effective as of July 1 2020, includes an increase in the land-tax free threshold to $450,000 coupled with a reduction of the marginal tax rate to 2.9% for land ownership between $1.2 to $5 million. The hope is to relieve current landowners and attract new local and interstate investors.
The year of the first-home buyer
If you’re a first-home buyer now is the time to be looking. According to Property expert and UniSA Property lecturer Peter Koulizos, “homeowners should take a long-term perspective, and that now is a great buying opportunity.”
As the investment into the South Australian economy continues and the population increases, so will the demand for housing. As always Adelaide appears to do what Adelaide does and house prices are expected to rise steadily over time.