03 Sep Post COVID-19 real estate predictions
COVID-19 is still with us but South Australia is emerging from lockdown quicker than many of its sister states, giving the residential real estate market a shot in the arm.
Predictions from industry experts about the post COVID market are mixed but reflect on the SA market’s ongoing durability.
Tom Bowden, The Advertiser Real Estate Editor, says SA has historically been resilient: “If you look back at how we bounced back from things like the GFC and previous depressions, we’ve responded to it a lot better than some of the more volatile markets of Melbourne and Sydney, for instance.”
“Here in SA it’s always been steady as she goes, with … incrementally positive value growth.”
Ruan Perera, Founder and Director of VThree Real Estate expects the strength of the Adelaide market to persist, particularly given its demographic makeup.
“Adelaide really does have a large downsizing market as well as a number of suburbs where homes are getting prices of $1 million and above,” he says.
Downsizing Baby Boomers tend to have more wealth at their disposal, as do buyers who are looking for the higher-end residential properties.
“Therefore, they are part of the sector of the community that’s quite resilient to the impacts of COVID,” Perera says. “That sector of the market, once their confidence comes back, will continue their activity.”
“Together with what the Federal and State Governments have been doing to cushion the economic impacts of COVID, with their grants, that’s stimulating activity particularly for the first home buyer, off-plan, and the house and land segments of the residential market. All of those as forces are going to see what I would predict is probably a growth that Adelaide hasn’t seen for a long time.”