Onthehouse Market Update, page-3

Adelaide

• Unemployment in South Australia has been increasing
since March 2008, when it was 4.4%. While today’s
unemployment rate is higher than the national average, it
has been improving since its high of 7.3% in June 2014.

• Calculations estimate that there is an oversupply of housing
stock of about 4,000 dwelling, which is significant as this
market is relatively small.

• The surplus supply problem is likely to be found in the
inner city unit market where the Government continues to
provide ‘off-the-plan’ apartment concessions of up to
$21,330.

• Affordability in Adelaide is among the best in the nation. It
currently takes 29.5% of the median household’s after tax
income to make loan repayments on the median house.

• The good affordability position will be of significant
assistance in ensuring the oversupply position is corrected
once demand is generated.

• The house market presents as if there is growth to come
over the next 12 months, however it will be at inflation
level. The units market presents as if it will struggle to keep
pace with inflation.

• 5 year growth predictions indicate that both the house and
the unit markets will struggle to keep pace with inflation.