We are on track to be the next ‘Perth’
Back in 2001 Perth, who had always been undervalued by the rest of the nation, embarked on what was set to be the biggest real estate boom they’d ever experienced. A huge growth in mining caused an urgent necessity for skilled workers in Western Australia and resulted in an increased demand for property. Investors jumped on board, taking their returns from the increased commodity prices on the share market and putting them to work in the property market. In the space of 6 years Perth saw their median house price increase from $180,000 to $450,000, a huge rise of 150%!!
So how does Adelaide compare to Perth?
Adelaide has always been undervalued by the bigger cities and in recent weeks even regarded as ‘a back water’ by our eastern cousins! The facts are that our mining boom is just beginning and house prices in Roxby are already showing the effects of the increased demand. Strong Defence contracts in place is seeing increased growth flowing out from the region surrounding the Edinburgh RAAF Base, with a prime example being the immense re-development of Port Adelaide – the last major city undeveloped port in Australia. South Australia’s Agriculture and Aquaculture industries are also set to attract skilled workers and further the growth of the property market.
At this current point in time Adelaide is recording a median house price of around $360,000 – sitting in sixth position behind Sydney, Canberra, Perth, Brisbane and Darwin respectively. Although interest rates are currently holding the market tight, our Real Estate market remains in a fantastic position to be able to surge forward with continued growth and enter another boom time. For the next 3 to 6 months we’re predicting that the market will remain stable, but if rates drop hang onto your hats – we could be in for a great ride!
Anthony Toop, Managing Director
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