It's easy to get swept up in predicting the future, but when you're considering buying property in Adelaide it also pays to look to the past for a little perspective. A CoreLogic RP Data report shows that from 1995 to December 2014, house values across Australia's capital cities have risen a total of 299.3 per cent – that's a compounding growth rate of 7.6 per cent a year.
Nonetheless, those looking to buy a property will be pleased to hear that value growth is slowing across the country. The past five years have seen a broad slowdown in value growth as a whole, recording a total of 19.7 per cent over the previous five years since December 2014. This seems very sedate when compared to 77 per cent total growth over the five years to December 2004.
The five years to December 2004 saw real estate in Adelaide experience a boom. Property values rose impressively over this time, recording a 105.4 per cent increase. Prices didn't reach the same heights in the following five years, only climbing 38 percent, and even less so in the most recent five years to December 2014 where home values only rose 5.7 per cent.
But for those of you considering what property in Adelaide has to offer, the data gives a nice slice of financial relief. According to the Government of South Australia median house prices in the city sat at a very reasonable $425,000 in December 2014, which sits tidily with RP Data finding that Adelaide's property market hasn't experienced any downturns in house values since the three-year housing boom between 2001 and 2004. If anything, the findings continue to highlight Adelaide's affordability.
Given the sedate performances in value growth outside of Sydney and Melbourne, there is more room for capital growth to arise – something that property investors in Adelaide will be happy to learn. If you're thinking about buying a house in the South Australian capital but don't know where to start, have a chat with local agent about what lies in store for the city's property market over the coming years.