South Australia is still bucking the trend of the weakening housing market in the country, while Melbourne has replaced Sydney as Aussies’ preferred city for investing, according to a report from CBRE.
South Australia’s diverse and steadily growing economic base provides a springboard for continued momentum in property markets.
“While headwinds continue to face the Sydney and Melbourne housing markets, the Adelaide residential market is holding up pretty well – being one of just two capital city markets where house prices grew in the last quarter of 2018,” Bradley Speers, Australian head of research, said during CBRE’s South Australian Market Outlook event in Adelaide.
The state is also benefitting from its growing defence, medical, engineering, and resources industries, according to Speers.
“The local industrial & logistics sector has rebounded really well following the cessation of car manufacturing in 2016. Underpinning that has been large scale infrastructure projects in addition to a lot of spending in the utility sector,” he said.
Spear also revealed the results of CBRE’s 2019 Asia Pacific Investors Intentions Survey, where Melbourne emerged as Aussies’ preferred city for investment. Investors in the country slightly overlooked Sydney, but it remains a top of mind for Asia investors.
Buyers were looking to sell more, as well as buy more – creating more active liquid capital markets in 2019.
“Most markets across Australia, including Adelaide, will record rental growth this year, which will continue to attract investment – both from domestic and offshore investors. South Australia in particular has always proven to be very stable in terms of economic growth and better sheltered from downturns, which will help to position it favourably from an investment perspective,” Speers said.