Chairman of Century 21 Australia, Charles Tarbey, has tipped South Australia as one of two states to watch in 2018.
As Sydney and Melbourne cool off and nationwide talk of a slowdown continues, Adelaide has proven itself as a solid performer in the past few months.
Changes in regulations and market conditions has led many investors to turn to Adelaide, a city known for its conservative and stable returns.
“It’s [South Australia’s] been one of those states where the movement in price has been steady all the way through. In the last few weeks, the Adelaide clearance rates have been pretty strong compared to this time last year,” Tarbey told Smart Property Investment.
While other capital cities have seen declines in clearance rates, Adelaide, Brisbane and Perth have all been improving.
Tarbey believes investors can put their money in SA with confidence but did add one caveat.
You just have to make sure you allow for a little bit of extra cash just in case you do get a vacancy or if there’s a closure of another industry … [because] South Australia seems to get belted with that,” he said.
The other state tipped by Tarbey to see growth in 2018 is Western Australia.
In recent months, Perth has started to show a turnaround after massive declines seen at the end of the mining boom.
Source: Smart Property Investment