The Highlights:
- Westpac forecasts 7% growth for Adelaide
- Listing volumes 36% below five-year average
- Negative gearing impacting investor-buyers
The Details:
Big news this month from Westpac. Adelaide is one of only three capital cities (alongside Brisbane and Perth) that will have capital growth in 2026, according to Westpac IQ. The Adelaide market is forecast to grow 7% this year, while other cities such as Sydney and Melbourne are contracting.
So what’s driving Adelaide’s growth? Listing volumes.
Listings are 36% below the five-year average, pre-pandemic. What this means is buyers are absorbing the stock that’s available, providing ideal selling conditions for those who want to take advantage of the winter market.
The Federal Budget has also impacted the local market, in terms of negative gearing. Investor buyers are being drawn to new stock rather than established housing, but what that also means is that existing investors are grandfathered in and less likely to consider selling now.
These combined moves make for tighter on-market supply. As such, we predict the winter property market in the Adelaide Hills is going to create the ideal selling conditions for those looking to make a move before the stock-heavy spring season arrives.
Are you buying or selling this winter? Please reach out, as the current conditions require a strong strategy.
In case you missed them, here are some of our recent reads:
