2023-10-01-莱坊-Adelaide_Residential_Insight_Q3_2023_4页_802kb

Adelaide Residential Insight Summary - Q3 2023

Core Content Overview

This report provides a detailed analysis of the residential real estate market in Greater Adelaide for Q3 2023, highlighting trends in sales, prices, rentals, and new builds, alongside economic and demographic indicators.

Key Market Trends

Residential Sales Performance

• Quarterly Sales Volume: Increased by 26% in the June 2023 quarter, with 6,939 homes sold.
• Annual Sales Volume: 15% lower compared to the same period in 2022.
• Days on Market: Average days on market for residential homes decreased to 71 days in Q3 2023 from 74 days in the previous quarter.
• Auction Clearance Rate: Rose to 79.2% in the week ending 10 September 2023, up from 75.7% the prior week and 66.7% in the same week last year.

Price Performance

• Median Residential Value: Reached $724,500 by the end of June 2023.
• Annual Price Growth: Increased by 6.8% over the year to June 2023.
• Quarterly Price Growth: Rose by 3.3% in the past quarter.
• Forecast: Prices are expected to increase by 4% in 2023, 3% in 2024, and 4% in 2025.

Rental Performance

• Total Rental Vacancy: At 0.6% in June 2023, down from 0.5% in the previous quarter and 0.4% one year ago.
• Gross Rental Yields: Increased by 6 bps to 4.49% in Q2 2023.
• Weekly Median Rent: Rose to $515 in June 2023, up 13.2% year-on-year.
• Forecast: Rents are projected to increase by 16% in 2023, 11% in 2024, and 8% in 2025.

New Builds

• Building Approvals:
  • Houses: 1,979 approved in the quarter to June 2023, up 25.8% from the previous quarter.
  • Apartments: 702 approved, up 43.3% from the previous quarter.
• Market Impact: The increase in approvals reflects growing demand and confidence in the housing market.

Economic and Demographic Context

• Annual Economic Growth (SA): 4.2% in 2022, with a forecast of 2.2% in 2025.
• Unemployment Rate (Greater Adelaide): 4.0% in June 2023.
• Official Cash Rate Target: 4.10% in September 2023, with a forecast of 3.4% in 2025.
• Population Growth: 0.8% annual forecast for 2025, with an estimated population of 1.4 million in Greater Adelaide as of 2022.

Property Type Breakdown

Established Houses

• Median Value: $814,000 at the end of June 2023.
• Annual Price Growth: 5.3% over the year to June 2023.
• Quarterly Price Growth: 2.8% in the past quarter.
• Rental Growth: 12.5% annual increase in median weekly rents for houses.
• Gross Rental Yield: 4.21% in Q2 2023, up 7 bps from the previous quarter.

Established Apartments

• Median Value: $449,500 at the end of June 2023.
• Annual Price Growth: 15.3% over the year to June 2023.
• Quarterly Price Growth: 6.0% in the past quarter.
• Rental Growth: 13.2% annual increase in median weekly rents for apartments.
• Gross Rental Yield: 5.34% in Q2 2023, up 3 bps from the previous quarter.

Market Forecast

Key Points

• Population Growth: Drives demand and contributes to rising rents and property values.
• Rental Vacancy: At a record low of 0.6%, indicating strong rental demand.
• Sales Activity: Increased significantly in the June 2023 quarter, with a notable rise in auction clearance rates.
• Price Trends: Both houses and apartments saw steady price growth, with houses showing stronger performance.
• Rental Yields: Improved slightly, reflecting better returns for investors.
• Economic Outlook: Slower growth is anticipated in the coming years, but rental markets are expected to continue rising.

Contact Information

• Michelle Ciesielski - Residential Site Sales
  +61290366659
  michelle.ciesielski@au.knightfrank.com

• Oliver Tontani - Franchise Partnerships
  +61882335210
  oliver.totani@au.knightfrank.com

• Sally Edvardsen - Residential
  +61290366845
  sally.edvardsen@au.knightfrank.com

• Erin van Tuil - Residential
  +61290366699
  erin.vantuil@au.knightfrank.com

• Luke Hayes - Residential Project Sales
  +61290366700
  luke.hayes@au.knightfrank.com

• Alistair Carpenter - Valuations
  +6129036662
  al.carpenter@au.knightfrank.com