TOOP+TOOP 2023 Property Market Report - Jordan Begley

Property Market Report

Welcome to TOOP+TOOP’s 2023 Annual Adelaide Property Report.

We hope you find this report interesting, insightful and informative.

Against a backdrop of consecutive interest-rate rises and inflationary pressure, the Adelaide property market continued to shine over the past 12 months.

Just when we thought we were going to experience a dip in home values, we instead saw continued growth.

As a result, Adelaide homes hit record peaks in 2023, growing by 7.6% through the year off the back of already substantial increases over the previous 12 months.

Put simply, Adelaide property has never been more valuable.

Despite a significant increase in value, Adelaide homes still represent excellent value compared with other Australian capital cities, particularly those on the eastern seaboard.

It’s no coincidence that the 2023 data showed Adelaide attracted more interest from interstate buyers than any other major city.

Please feel free to contact me at any time if you’d like to discuss this report or receive some guidance on your property journey in 2024.

Regards, JORDAN BEGLEY M 0410 289 240 E jordan.begley@toop.com.au W jordanbegley.toop.com.au

MARKET DYNAMICS

With an ongoing sparsity of listings, buyer demand clearly outweighed supply.

As a result, Adelaide homes found new owners in an average of just 24 days, slightly quicker than the 2022 average days on market of 25 days.

That data matches feedback from the TOOP+TOOP sales team. Buyers are typically very well-researched before inspecting a home, meaning they’re wellplaced to pursue a home if it suits their requirements.

The flow-on effect has been evident at auctions, with a string of exceptional results under the hammer through 2023.

Key Adelaide sales data for 2023

24

Average Days on Market

7.6%

Increase in House Price Growth in 2023

$704,267 Median House Price for 2023

33.7%

Increase in Unit Price since March 2020

58%

Increase in House Price since March 2020

ADELAIDE - LONG TERM GROWTH

While property values in other Australian capital cities have fluctuated wildly over the past half-century, the Adelaide market has remained incredibly stable.

Only twice in the past 43 years have Adelaide home values experienced negative growth. In 1996, home values dipped by 3 per cent. In 2012, there was a 4 per cent decrease.

There are few major cities that better illustrate the saying ‘safe as houses’.

Percentage house price change 1980 - 2023 30% 20% 10% 0% -3%

-10% 1980

1996

-4%

2012

2023

AFFORDABILITY + LIFESTYLE

While Adelaide property has enjoyed significant growth in recent years, it remains one of Australia’s most affordable capital cities relative to average household income.

In Sydney, the average home value is 14.2x the average household income.

In Melbourne, buyers would, on average, need 11x their household income to purchase a property.

In Adelaide, that multiple is just 8.1.

So while the average salary in both Sydney and Melbourne is considerably higher than Adelaide, buyers need to commit more of that income to secure a home.

As a result, Adelaide home buyers have more residual income to enjoy life.

It’s another reason Adelaide proved a popular choice for a diverse range of home buyers in 2023.

Price to income ratio 15 14.6 12 11 9 8.1 6 5.5 3

0

Perth

Adelaide

Melbourne

Sydney

EXPANDING APPEAL

For the first time since 1991, we’re seeing a positive shift in interstate migration to Adelaide.

Put simply, we’ve reached a point where more people are moving to Adelaide than there are leaving – and that wasn’t the case for the previous three decades.

As a result, the buyer pool here has also increased, creating even more competition that, in turn, has driven home values to record-high levels.

South Australia population movement Population 30,000 25,000 20,000 15,000 10,000 5,000 0 -5,000

Net overseas migration

Net interstate migration

2023

2020

2010

2000

1990

-10,000

EXPANDING APPEAL

The 2023 data from leading property portal Domain supports our observation of increased interest from interstate buyers.

According to Domain data, 42 per cent of buyer inquiries on Adelaide property came from states other than South Australia.

That’s the highest of any Australian capital city, further endorsing the strength of the Adelaide property market.

11%

41% Perth

Brisbane

42% Adelaide

28% Sydney

34%

Melbourne

9%

Hobart

BUYER TRENDS

What have buyers been searching for in 2023?

According to Domain, buyers interested in Adelaide property have a focus on lifestyle features such as swimming pools and sheds.

It’s also interesting to note that the term ‘new’ is high on their wish-list, suggesting the prospect of renovations has become less appealing.

Buyers most popular search criteria from domain.com.au

School Zone:

House Features

4 Bedroom 2 Bathroom 2 Car

Glenunga International High School Most-searched suburbs (overall) 1. Unley 2. Goodwood 3. Bridgewater 4. Stirling 5. North Adelaide

Most popular keywords for all Australian properties 1. Pool 2. Study 3. Granny flat 4. Waterfront 5. View

Most-searched suburbs from overseas buyers 1. Adelaide 2. North Adelaide 3. Parkside 4. Norwood 5. Unley Most popular keywords for Adelaide properties 1. Pool 2. New 3. Shed 4. View 5. Land

According to realestate.com.au, average enquiry for properties in Adelaide in 2023 increased by 24.4% compared with the previous year.

TOOP+TOOP’S MARKET FOOTPRINT

Our toop.com.au website attracted more than 2.4 million unique visitors through 2023.

While Adelaide locals accounted for a majority of those visitors, we also generated significant traffic from both across the border and from overseas.

ORIGIN OF OVERSEAS TOOP.COM.AU VISITORS

ORIGIN OF AUSTRALIAN TOOP.COM.AU VISITORS

1. United States 2. New Zealand 3. UK 4. India 5. Singapore

1. Adelaide 69.4% 2. Melbourne 6.2% 3. Sydney 4.4 % 4. Darwin 3% 5. Mount Gambier 2.4%

Toop.com.au buyer demographics

58.7%

63%

Female

People over the age of 45

41.3% Male

Key interests

News + Politics

Avid news readers Entertainment news enthusiasts

TOOP+TOOP’S SUBURBS TO WATCH IN 2024

What is the most commonly asked question of real estate agents...Where are the next property hotspots?'

As team, we have rigorously debated this topic before nominating our most promising suburbs for 2024.

Our selections take into consideration not only property data but also our conversations on the ground with over 76,000 buyers this year and the forward indicators we’ve learned to spot over 37 years embedded in the Adelaide real estate market.

HOPE VALLEY

WEST LAKES KILKENNY

ATHELSTONE

BROMPTON

CROYDON PARK

QUEENSTOWN

PASADENA

WATTLE PARK

FAIRVIEW PARK

CAMDEN PARK

PORT NOARLUNGA O’HALLORAN HILL

TERINGIE

URRBRAE BRIDGEWATER NAIRNE

*This report reflects our team’s opinions and insights and should be used as a guide only. For personalised property advice, we recommend talking with one of our TOOP+TOOP Sales Partners.

TOOP+TOOP’S SUBURBS TO WATCH IN 2024

Athelstone Why: Large allotments, good schools, walking trails, sporting complexes, significant green open spaces, easy city commute and fantastic affordability will see this suburb continue to grow in popularity.

Bridgewater Why: Stirling and Crafers without the price tag.

Recognised as the fastest-selling suburb last year.

Unlike neighbouring suburbs, you can still buy a family home for under $1million, although with the secret now out, maybe not for long.

Camden Park Why: Perfectly positioned just 10 minutes from the city, Marion and the beach. Typically, the inner-city suburbs fire first and then the beach and connecting corridors last. There has already been strong growth, but we expect more in 2024.

Croydon Park Why: Offering excellent value compared with surrounding suburbs. The current median price is 25% less expensive than sister suburb West Croydon.

A rising tide lifts all ships, making price growth inevitable.

Brompton Why: Conveniently positioned on the edge of the CBD with easy access to the city ring route.

A community suburb with arguably the most affordable entry into the Adelaide High School zone.

Fairview Park Why: Simply put, this suburb is under-valued and no one knows why. The golf course is the jewel in the crown and it’s also just three minutes from Golden Grove.

TOOP+TOOP’S SUBURBS TO WATCH IN 2024

Hope Valley Why: Offering a similar lifestyle to Highbury, but with a $150,000 lower median sale price. The newly opened Hope Valley reservoir has added to buyer interest, contributing to the 11% growth in 2023. We expect that to continue in 2024.

Kilkenny Why: Located on the train line near the city, Kilkenny combines a western cafe lifestyle with character homes, averaging a median sale price of $671,000. The redevelopment of the Bianco site is just the beginning of big things to come.

Nairne Why: Offers affordability with its own freeway exit. A fourbedroom house averages around $700,000. The main street revitalisation, including a new Foodland, brewery and distillery, is a good news story in the Hills. It will be utilised by many more with the new land releases.

O’Halloran Hill Why: Offers stunning views and new walking trails around the reopened reservoir. The government is also implementing $7 million infrastructure upgrades along Majors Road to give further access to parks, bikeways and improved accessibility to Main South Road for everyday commuting.

Pasadena Why: Provides exceptional views over the CBD and some of Adelaide’s best beaches. Next door to Flinders Hospital and train line with many recently upgraded services close by. Improved accessibility to the CBD, McLaren Vale and the Fleurieu via the Southern Expressway, makes it a popular choice for growing families. Colonel light gardens has exploded with prices radiating into Daw park and now Pasadena.

Port Norlunga Why: Since Covid buyers have been flocking to the Fleurieu Peninsula for an affordable sea change, many buyers are looking for both holiday homes and a more permanent beachside lifestyle. Home to the Encounter marine park, a coastal village vibe with eclectic shops, easy access to metro Adelaide and arguably the prettiest beach in SA, will continue to push prices.

TOOP+TOOP’S SUBURBS TO WATCH IN 2024 Queenstown Why: Port Adelaide Enfield Council zone has become an emerging hotspot for buyers, with the Government’s announcement of the submarine construction yard to be built in Osborne. The suburb of Queenstown is a well-kept secret known by locals for its large character villas on significant land holdings that are still (for now) at an affordable price point with the median sale price of $612,450.

Teringie Why: Views in Adelaide have historically been undervalued however in the past 5 years they have become a feature that commands a premium price. Teringie offers some of the best views in Adelaide, and with the median sale price a touch over $1 million dollars, it represents value for money with large allotments and architectural properties with a backdrop that mirrors the Hollywood Hills.

Urrbrae Why: Value for money is hard to come by in Adelaide’s blue chip Eastern suburbs, however Urrbrae is a hidden gem, with its close proximity to Burnside Shopping Village, public & private schools and easy access to the freeway and Adelaide Hills. Urrbrae for unknown reasons become out of flavour however its value cant be ignored any longer.

Wattle Park Why: Renowned for its 270-degree views of the hills, CBD skyline and ocean, Wattle Park is within fingertips reach of the newly reinvigorated Burnside Shopping Village, Penfolds Magill Estate and green spaces such as Kensington Gardens reserve. Midcentury modern properties are back in vogue and here is the heartland of exactly those, astute buyers are enjoying improving these homes and also building state of the art dream homes in the hills with views that are second to none.

West Lakes Why: New and Character homes increase in price first and then those built in between rise last. West lakes provides some of the most afforbale waterfront living in not just Australia however the world! There is a mix of properties at affordable price points and the genie cant stay in the bottle forever.

This is a general market promotion. Please disregard if you have already enlisted another agent. RLA 301309