Happy New Financial Year, I hope you are well and keeping warm.
📈 Adelaide Property Market: Prices Surged 15.4% in the 2024 Financial Year(FY) 📈
Adelaide’s property market had a strong showing in FY24 despite tough economic conditions like higher living costs and increased interest rates. The ongoing shortage of homes continued to drive up property values.
💲 Property Values – Adelaide’s Median Value now sits at $767,974
- Monthly: Property prices rose by 0.7% in June 2024 nationwide, with capital cities and regional markets both seeing gains of 0.7% and 0.6%, respectively. Adelaide grew by 1.7% in June.
- Quarterly: Adelaide, property prices increased by 4.7% in Q4 2024.
- Annual: Nationally, property prices jumped by 8.0% over FY24, led by Perth (23.6%), Brisbane (15.8%), and Adelaide (15.4%).
🏘 Market Trends
- Diverse Landscape: While the national market is strong, local conditions vary widely depending on location, price range, and property type. Western Australia, South Australia, and Queensland are seeing strong price growth due to tight supply, while Victoria and Tasmania are dealing with more listings and softer conditions.
- Affordability and Demand: Demand for affordable housing has risen as borrowing capacity shrinks and affordability becomes more challenging. Properties in the lower price brackets are appreciating faster, driven by first-time buyers and investors.
- Rental Market: Rental prices continued to rise steadily, up 0.4% in June and 8.2% annually. However, Sydney, Melbourne, and Brisbane are seeing slower growth in unit rentals due to affordability issues and less international migration.
- Supply-Demand Balance: Despite more listings, total housing availability remains well below the five-year average, with Perth (-47%), Adelaide (-43%), and Brisbane (-34%) facing significant shortages. In contrast, Melbourne (+14%) and Hobart (+46%) have seen higher-than-usual listings.
🔮 Outlook Looking ahead to FY25, the market is expected to keep its momentum with tight supply and strong demand pushing prices. Challenges like affordability and high interest rates persist, but potential tax cuts and expected interest rate adjustments in early 2025 could stimulate further market activity.
Whatever your goals or aspirations, do not hesitate to get in touch to discuss your plans for the future.
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Best Wishes,
YG
Yianni Garbas 