07 Sep Property… Still ‘Growing’ Strong
September’s meeting of the Reserve Bank of Australia (RBA), saw interest rates kept at the record low level of 1.5%.
On September 1st, CoreLogic released their August report of the Hedonic Home Value Index which shows Australian (capital city) dwelling values are still on the rise with a 1.1% change for the month bringing the annual (year on year) return to 7.0%. Median dwelling prices have also increased across all capital cities.
The report showed that annual growth on Australian properties is slightly lower than this time last year however the rate of capital gains remains above other benchmark measures such as inflation, income growth and rents.
This all results in the Australian Dream of owning an investment property
being more of a reality than most think.
What about Adelaide & South Australia
Adelaide is still showing strong results with a total year on year return of 7.4% at 31/8/16 and median dwelling price of $420,000.
Many economists and experts all agree that Adelaide’s suburbs will continue to produce long-term capital growth prospects thanks to improved infrastructure.
Examples of the current projects being undertaken in South Australia include:
- $1 billion (approx.) transformation of the Riverbank & Adelaide Festival Plaza Centre
- $896 million Torrens to Torrens
- $620 million Darlington Interchange
- $160 million O-Bahn extension
Aside from government funded infrastructure projects, private businesses are also investing in the state.
Chicken producer Ingham will spend $275 million doubling the size of it’s South Australian operations. This will create 850 jobs in the process.
Premier Jay Weatherill said the expansion positioned South Australia as a “strategic national centre” for Ingham. “Food production is a growing sector of our state’s economy and we are supplying the business conditions that make investing here a wise choice,” he said.
Ingham executive chairman Mick McMahon said the company would look to target workers set to lose their jobs in car manufacturing. “We have started discussions on how we can tap into the skilled workforce in northern Adelaide and provide new opportunities to those displaced by the closure of car manufacturing,” he said. “We have already employed some people from this industry in leading positions.”
These projects create significant employment opportunities and provide world-class infrastructure. This is expected to drive up activity in the real-estate market which in turn will result in long-term capital growth and respectable rental yields across South Australia.