Suburb by suburb: What your home could be worth in 2028 according to PropTrack

The below article appeared in The Advertiser on May 13 2023 and was written by journalist, Tom Bowden

Adelaide’s median home price would rise to nearly $900,000 in 2028 if the solid growth of the previous five years was repeated.

Adelaide homes have experienced significant value growth over the past five years – with most of that coming during the last three – and new data shows what they could be worth if this growth repeats over the next five.

According to PropTrack data, Adelaide’s median home price, which currently sits at $615,000, has increased by 43.09 per cent over the past five years.

If this growth was repeated over the next five years, it would climb to $880,000.

Glenside on Adelaide’s eastern fringe has had the greatest price increase over the past five years – up 135 per cent.

If its growth continues on this same trajectory over the next five years, its median would climb from $953,000 to $2.237m.

 

Homeowners in Kensington Gardens, also in Adelaide’s leafy east, would also fare well, where home values could climb 103 per cent from the suburb’s current median of $980,000 to $1.99m.

The report is not intended to be relied on as a forecast for what home prices will do, rather shows what they could do if history repeats.

Alexander Real Estate director Steve Alexander said the rapid value growth seen over the past few years was out of character for SA which is usually characterised by slow and steady capital appreciation.

“The growth pattern we’ve seen historically over multiple decades has been steady and slow growth,” he says.

“We’ve not seen anything drive the market quite like the pandemic has over the past three years – rate reductions do, but not to the same effect the pandemic did.

“That altered so many things in regards to how we live and it’s safe to say we’re not likely to see those sorts of changes in the market again without a world event like that, but it’s given us prices that we think we’ll continue to see and I think there’s some further steady growth in the market in the future.

I think we’re in for some steady growth, barring any massive hiccups in the market.

“If rates stay on hold for a little while and the economy continues to chug along, we’re going to see further increases.

Glenside resident Iballa Rodriguez, 50, who bought in the Botanica apartment complex with her husband Diego Garcia-Bellido, 52, said she loved the area and had seen huge growth in that time – both in the number and prices of homes around her.

“We are on the fifth floor and the second floor homes are now selling for about $150,000 more than they bought for, so even in two years they’ve increased considerably,” she said.

“We’re looking to stay here for the next five to 10 years, but it’s nice to know that if we sell we would make more than what we put into it.”

Homeowners in Adelaide’s more affordable suburbs could also win big if history repeats.

Elizabeth North’s median could climb 90 per cent from $295,000 to $561,000, and Davoren Park homes – which currently have a $330,000 median – could be worth $622,000 in 2028 if the 89 per cent growth it has seen over the past five years is repeated.

Harcourts Sergeant agent Mark Lloyd, who specialises in selling in the northern suburbs, said the growth seen there over the past five years was unprecedented.

“But at the same time, it has been undervalued for a long time and was well overdue for a catch-up,” he said.

“Covid certainly fuelled this growth, as have a range of fantastic developments and infrastructure upgrades in the area, but affordability is really what’s been the biggest driver.

“Although home prices have soared, they are still relatively affordable, and I think they still have some growing left to do yet.

“This whole area has been a hit with investors, particularly those from interstate who are impressed by the low initial outlay and high yields.”

Adelaide Now Article Link Here