The culture, the community and the sweeping landscapes are all part and parcel of owning a property in Adelaide, but the city could also offer an affordable solution for those looking to make the leap from renting to home ownership.
While 20 years ago more than 95 per cent of property sales were below $400,000, in 2014 only 22 per cent of home sold were below this price. Similarly, the number of homes sold between $400,000 and $600,000 has skyrocketed from 3 per cent 20 years ago to 33.4 per cent last year, while house sales between $600,000 and $1 million climbed to 28.1 per cent. The $1 million mark is the most telling: 16.2 per cent of properties in 2014 were above this mark, compared to the miniscule 0.4 per cent two decades earlier.
The report also noted that while rising house prices are good news for those who already own a property, they can discourage many renters from buying a home. But this isn't the case in every location. While overall trends can seem disheartening, it's important to look a little closer at the trends in each individual city – indeed, the figures reveal that there are marked differences across the price points.
The burgeoning values are very much concentrated in the country's two most expensive cities – Melbourne and Sydney. Households looking for something a little more affordable could find sweet relief elsewhere, particularly real estate in Adelaide. Along with Hobart, Adelaide recorded most of its sales in the $200,000 to $400,000 price bracket last year, while more unit sales also fell under this category in Brisbane, Adelaide and Hobart than anywhere else.
If you're interested in one of the many affordable options in the South Australian capital, or want to know more about how rising values could affect you in the future, speak to a local real estate professional.