While the rental markets in many of Australia's largest cities are showing signs of a gradual slow down, the future for property management in Adelaide is looking up. For those of you looking to make the most out of your investments in the new year, recently released data from CoreLogic RP's Quarterly Review for December 2014 shows that there are plentiful opportunities for further capital growth and rental yields in our state's capital in 2015.
It may have been a lingering couple of years but, according to CoreLogic RP's figures, house rentals in Adelaide enjoyed a rent price increase of 2.9 percent for houses through December 2014 – a comparatively higher rate than for the same period in 2013.
The last quarter to December has seen rent price growth remain flat for units in the city, and it can be tempting to think the worst. However, it's a matter of long-term gain versus short-term solutions. Over the past five years unit rental yields have slowly increased 2.1 per cent.
Yields can seem an attractive prospect now, but carefully selected property provide long-term benefits. 2015's promise lies in Adelaide's affordable dwelling values and attractive incentives for construction in all market segments. When combined with a relatively low vacancy rate, this suggests the rental market is poised to experience healthy, sustainable levels of growth as the year progresses. Moreover, solid capital growth rates in many suburbs are indications of a promising year to come.
In particular, returns in sought-after eastern suburbs are proving that keeping long-terms gains in mind are important when considering property in Adelaide. Median house prices remain comparatively low among Australia's other capital cities , and solid capital growth rates in many suburbs such as property in North Adelaide, are indicative of a promising year to come for investors.
Inner city units in particular are showing potential for investors looking to add value to their portfolio. For instance, Your Investment Property Magazine lists units in central Adelaide as having a steady 5.36 per cent increase in rental yield over 2014; similarly, in Burnside, units have recorded 4.42 per cent growth in rent prices over the past 12 months.
All signs are pointing to a positive start to 2015 – and beyond.