If you were looking for another reason to consider real estate in Adelaide, the latest CommSec "State of the States" report for January 2015 shows that there is one area in particular that is showing the most promise for South Australia's economic future – population growth. The figures indicate that population growth is continuing on its upward trend in South Australia, a promising sign for property management in Adelaide.
The report analyses a number of key indicators and compares them with decade averages to figure out how each state or territory is performing overall. Unsurprisingly NSW has come out on top of the economic ranking, but there is plenty of promise for South Australia's – and by extension, Adelaide's – economy going forward. SA sits seventh on CommSec's economic rankings, ahead of only Tasmania, but these rankings can be somewhat deceiving.
Each state or territory has its own respective average against which to compare the economic indicators. While holding seventh place for economic growth, as well as dwelling starts, housing finance and construction work, SA indicated above average performance across most of the board. It enjoyed a rise in economic activity of just under 9 per cent on the decade average, putting it markedly ahead of last place on the list, Tasmania, at just 0.3 per cent above its decade average.
With a steadily growing population base comes the need to supply housing and jobs to meet demand, and it's likely in the coming years that relative population pressure will have an impact on house prices, capital growth and rental yield. Indeed, house prices have risen 4.3 per cent above the decade average, a sustainable number when compared a 2.7 per cent rise in wage rates – compared to NSW's 12.7 increase in house prices, SA continues to enjoy relatively parallel and affordable growth.
The past year might look like a mixed bag, but there are some clear paths for investment heading forward – particularly if you're looking to South Australia's economic centre, Adelaide. If you're in any doubt about what this could mean for you, your property manager or real estate agent can advise you on how a growing population or improving economic performance might affect your investment portfolio in the coming years.