If you are considering investing in property in Adelaide then there are many positive factors that make this South Australian city a stand out for investment. As one of the most affordable cities in Australia right now, property investors who are finding the likes of Sydney and Melbourne too expensive can safely secure a quality property in Adelaide for roughly half the cost.
Alongside affordable real estate, Adelaide is also home to some breathtaking beaches, wonderful wine regions and some sensational shopping opportunities in the CBD. Adelaide offers an excellent, laidback lifestyle, where residents can find their dream home, with plenty of space to grow, close to the CBD at affordable entry prices.
To help you understand why property investment in Adelaide makes a smart move, we have come up with our top 10 reasons to invest in Adelaide property today.
Top 10 Reasons why you should invest in Adelaide today
1. Affordable living
One of the main appealing reasons to invest in Adelaide property
today is down to its affordability. According to the CoreLogic report at 30 June 2017, Adelaide is Australia’s second most affordable city to buy property after Hobart. The median dwelling price in Adelaide stands at $440,000, compared to $497,200 in Brisbane, $675,000 in Melbourne and $880,000 in Sydney. This South Australian capital city has also seen a 6.6% total gross return.
2. Low vacancy rates
Adelaide is home to a very low vacancy rate of 1.8%, making this a very appealing city to invest in right now. (SQM Research July 2017).
3. Major regeneration projects in the Adelaide CBD
A great reason why you should invest in Adelaide properties is due to the major regeneration projects occurring in the Adelaide CBD. The State Government has invested $3b across 380 hectares of the Adelaide CBD and this is increasing confidence in the residential property market.
The South Australian Government is currently investing $1.85 billion over the next decade to build the New Royal Adelaide hospital, set to become Australia’s most advanced hospital.
Two other distinct precincts include Adelaide Convention Centre involving $397 million government investment with an estimated $43.3 billion tourism-related economic activity during the next 20 years. The Adelaide Oval is also undergoing $535 million redevelopment.
4. Highly liveable city
Adelaide has been named the fifth most liveable city in the world in 2015 and 2016 by the Economist Intelligence Unit Liveability Survey. Surveying 140 cities worldwide, each city is accessed in key categories including stability, healthcare, culture, environment, education and infrastructure. Adelaide has ranked in the top five in consecutive years since 2012 and the only Australian city to beat this record is Melbourne as the world’s most liveable city in the world six years in a row.
5. Growing population
Adelaide is expected to grow by 421,000 people by 2041 and this growth is mainly being driven by younger people choosing the city as a place to live. This is helped by its excellent tertiary education, employment opportunities and access to leisure and entertainment.
Migration is also a significant driver of Adelaide’s population growth, particularly for a large net migration of 18-24 year olds – an age group that is dominating the apartment market.
The South Australian Government and the Adelaide City Council are working to increase the population within the Adelaide City boundaries. Based on government assessments, and in order to hit a 30-year growth plan, the CBD will need an additional 15,000 apartments to accommodate approximately 27,000 people. The government is focused on achieving its population target of 30,000 new residents by 2017 and 50,000 new residents by 2024.
6. Stamp duty concessions and tax incentives
Investing in Adelaide property will also appeal to property investors with the State Government introducing an extension to the $15,000 stamp duty concessions in a ploy to increase investment in off the plan apartments, whilst drive inner-city living and CBD population targets. This off the plan stamp duty concession has now been extended by 12 months and due to end 30 June 2018. A Pre-Construction Grant for off the plan apartment purchasers of $10,000 may also be available for contracts entered into between 22 June 2017 and 30 September 2017.
The South Australian government is also creating the lowest taxing environment for doing business in Australia with no foreign taxes. Unlike Victoria where foreign buyers will have to pay 7 per cent additional stamp duty on residential property and an additional 4 per cent in NSW, South Australia wants to actively encourage more foreign investment across all sectors of the economy.
7. First class education
As Adelaide is home to world class education institutions, with over 30,000 international students from 125 countries based here, there is a growing demand for properties from students and teaching staff alike. With millions of dollars invested in new universities and campuses within the CBD, Adelaide is fast becoming a key Australian education hub.
Universities situated here include the University of Adelaide, University of South Australia, Flinders University and Torrens University Australia.
8. Household growth
Couples without children and single households are the fastest growing household type in Adelaide. This is mainly due to a younger population being drawn to the vibrant inner-city lifestyle. The dominance of this household type is expected to continue with the introduction of quality new off the plan apartments.
The South Australian Tourism Plan 2020 is focussed on achieving the South Australian tourism industry’s full potential of $8b of visitor expenditure by 2020. This would generate almost 10,000 additional direct jobs in the South Australian economy. South Australia is also listed as Lonely Planet’s number five Best in Travel Top Regions for 2017.
10. Best place for business in the Asia-Pacific
Adelaide is also an important business destination, being one of Australia’s most profitable cities for business and investment. KPMG’s 2016 Competitive Alternatives Report ranked Adelaide as the most competitive place to do business in the entire Asia-Pacific region.
With Adelaide one of the most liveable cities in the world, home to an ever increasing population and first class education, investing in Adelaide today makes a smart move. And as one of the most affordable cities in Australia besides Hobart, you can make the most of affordable entry prices.
Get in Touch
Find out more about the fantastic property investment prospects in Adelaide
today by speaking to one of the friendly and knowledgeable iBuyNew team members. Simply give us a call on 1300 123 463
to get your investment property portfolio started the right way.