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The latest RP Data-Nine Rewards survey of housing market sentiment has revealed Adelaide is the most optimistic property market in the country.
More than 90 per cent of survey respondents in Adelaide said now is a good time to buy, well ahead of the next most optimistic capital Brisbane, at 86.5 per cent.
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Nationally, the percentage of survey respondents who said now is a good time to buy fell from 80 per cent in January 2013 to just 75.7 per cent.
Adelaide’s optimism comes on the back of a year of slow growth by national standards, recording just a 2.5 per cent increase in dwelling values in the last 12 months.
Senior research analyst at RP Data Tim Lawless told The Adviser that this slower than average growth has actuallyl put the region in a good position to surge forward.
“We don’t have any formal predictions but I think Adelaide is probably going to grow somewhere around the five per cent mark or higher this year,” he said.
“Adelaide residents are still seeing that there is a lot of opportunity because they haven’t seen such high levels of growth in the market place,” added Mr Lawless, explaining the nation-high levels of confidence.
Mr Lawless also noted Adelaide’s cheaper median home price means more prospective home buyers could enter the market.
“Adelaide is the most affordable of the mainland capital cities, the typical dwelling is worth about $390,000 and the typical house about $415,000 so it’s relatively affordable are there is not that same barrier to entry that you will find in some of the larger capital cities,” he said.
After a year of strong growth confidence appears to be dwindling in Melbourne and Sydney with just 73.7 per cent and 61.6 per cent of respondents, respectively, saying now is a good time to buy.
“The ongoing debate about a housing market bubble is clearly an issue that has the potential to dampen housing market sentiment, particularly in markets such as Sydney and Melbourne where home values tend to be higher and more than 64 per cent of respondents think the housing market is vulnerable to a significant correction,” Mr Lawless said.
