What’s up with Adelaide housing?

By Leith van Onselen

There’s something weird going on in South Australia. According to the Australian Bureau of Statistics (ABS) housing finance statistics, the number of owner-occupied housing finance commitments (excluding refinancings) in South Australia are tracking near decade lows, some -26% below the five-year moving average (see below chart).

And first home buyer demand in South Australia is highly subdued, with the number of FHB mortgage commitments some -30% below their 5YMA, with the FHB share of total mortgages (14%) also well below the 5YMA (17%) (see below charts).

Yet the Adelaide housing market is outperforming the rest of the nation according to RP Data-Rismark, having risen in value by nearly 1.2% since the beginning of the year as the other major capitals have suffered value losses (see below chart).

And the divergence in performance has been particularly stark since the beginning of April, with Adelaide rising in value by 2.7% as the other capitals have suffered value losses (see below chart).

Any ideas as to what might be causing Adelaide’s housing market to outperform the rest of the nation?

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Comments

    • That is a seriously bad TV show.

      Adelaide is a really nice city that is within an easy drive to the Barossa for a nice weekend away, world class wines, it has good beaches, and it has nice vibes – seriously great fresh food market – it has a lot going for it.

      And SA is an iron ore exporter plus it has the Olympic Dam project. Have you seen what house prices have been doing in the mining areas lately?

      • I agree Adelaide is a great place to live. Quality beach side living is much more affordable than in VIC/NSW and in my opinion we have better beaches (although you have to travel down the coast to get decent waves).

        But Olympic Dam? Do you really think that would have a noticeable effect on Adelaide property? I doubt it.

        • BB – check out house prices at Roxby Downs. Adelaide as the capital will get a spin off from mining.

          How many mines are there in Perth?

          • there is a good message further down stating that a lot of the FIFO in SA is actually from Pt augusta/pirie etc. I used to work at Olympic dam so I can certainly attest to this.

          • The Perth median is around the same today as it was 6 years ago.

            How are you suggesting this whole mining project in same state = growth in closest capital city works?

          • darklydrawlMEMBER

            Agreed Serenco – Indeed I know a few FIFO folks who (along with their families) are domiciled in inner suburban Adelaide itself and still work up at Roxby.

          • They must be FIFO. I agree that Adelaide is a nice place but having driven from Adelaide to Roxby downs once, I can say it is a helluva drive, through some of the most awful, post-nuclear holocaust looking country I have seen in my extensive travelling around Australia.

          • people probably shouldn’t forget as well that Roxby is a township of quite a few thousand. We’re not talking a single pub and post office here.

          • If The OD expansion is approved by BHP Adelaide will not know what hit it. LARGE jumps in the number of vistors, workers, businesses and state government coffers will all spell lots of work for everyone not just mining. The money from WA’s boom is being spent in perth. New stadiums, new highways, new railways and lots of residential construction. Make no mistake, the OD expansion will make the mining boom seem real to the east coast.

      • The moment I decided I am not gonna grow old in Australia was when I realised that people from other parts of the country regard Adelaide as a really nice place to life and the place to raise a family.

        Adelaide really is far behind and only after a while you start to notice the detrimental impact Adelaidian conservatism has on the quality of life.

        P.S. This is the capital city index. I can assure you there is no mining in Adelaide…

      • Not a great fan of the beaches here (coming from a QLD born and bred boy).

        Mostly while i’d say on paper Adelaide seems like a great place to live, it actually showing its poor fiscal position and conservatism quite a lot.

        For example Sunday trading is a relatively recent thing here and shopping on public holidays? Not a chance.

        The roads are absolutely woefully designed (just never tell an adeladian this!) the trains are not electrified yet.

        I could go on for quite a while. As someone who’s lived here for a few years I’d say adelaide reminds me of a large country town in the vein of ballarat or something

        • Adelaide is classified as “regional center” according to Dept of Immigration.

          • this makes sense to me, where else can you rent an inner (really inner) city town house for $300 a week?

          • AFAIK Perth has been
            ‘reclassified’ (Adelaide too?). Due to politically sensitive 457 quota’s hitting their ceilings for cities, No more were to be printed if the cities were classified as cities – so they were reclassified as ‘regional centres’, & presto – more 457’s.
            Eeasy!

          • Charles Ponzi

            The fact that Adelaide is classified as a regional centre is truly depressing. On the plus side, we have an airport for those with the financial means to escape.

      • PF,
        yes, on paper it all looks hunky-dory..

        South Australia, is “dis-advantaged” state.

        Wine regions: There is absolutely nothing in those regions for a tourist other than taste/drink wine.

        Shopping, i mean grocery shopping has to be “timed” correctly otherwise you might have to miss out on your meals on the weekend! (dont even bother looking for ‘choice’ of restaurants on a sunday!).

        Housing is slightly cheaper (renting or otherwise) but everything else is dearer! On the flip-side, there are not many jobs either!

        My view might be simplistic but it does affect!

        Most locals think they are living in a developed-city here, but cannot blame them because they have not seen anything better!

        • Virus, I’ve only stayed in Adelaide briefly and I have a relative there, but it does have a nice feel to it in many areas of the city.

          The ocean is too cold for a Qlder like me to swim in, the beaches are much nicer that a lot of UK and European beaches, although it isn’t the Gold Coast.

          The extreme heat in summer would worry me, but on balance I’ve lived in worse places than Adelaide, and clearly plenty of people are happy to live there.

          PS – what else do you go to a wine region for but to drink wine – I did exactly the same thing in France, Italy, and Germany. Hmmm – on reflection, perhaps I have a drinking problem.

      • Also, ‘great weekend away’ in Barossa will set you back by atleast $500 for a couple, unless you are camping. One needs a job with decent-pay to be able to afford such ‘great weekend away’ multiple times a year!

      • Pete those resource projects don’t make Adelaide, Adelaide is Adelaide and over priced like everything else. Remember, silly people buy property in this sort of mkt.
        What was your last buy and why? Be interesting I think, likely a yield play on a small one.

  1. I agree. In the past, I’ve met many people (especially in the Adelaide Hills) who have sold their $M properties on the East coast, to buy something “better” in Adelaide for a lower price. Less traffic, slower pace, easy parking etc etc. Also, it’s much easier to do business via the Interwebnet, so one doesn’t need to actually live in the business centres of Australia to DO business.
    I don’t expect it to save the SA housing market long term, but it could be a contributing factor.

  2. I’m thinking it’s an anomaly arising out of RP Data’s new daily index methodology. Do SA agents report sales with a larger lag than other states? Maybe the results for May are including some good February sales?

  3. I think this rings true for the entire country, despite the others showing decreases. The indicators are awful yet there are still plenty of areas that defy logic and ultimately the ‘you can never go wrong with property’ mindset is still largely in tact. Until such time as that is broken and 20 somethings stop taking about retiring at 40 with a portfolio of 6 IPs, we ain’t seen nothing yet.

    The US is a great example. Three years ago the frenzy rivalled ours, but over time with the bloodbath, you couldn’t give most properties away. For those that can’t get over there to see it for yourself, have a look at the number of US based property shows that have disappeared off Foxtel (ditto UK programming). It was pure madness three years ago, but we’re slowly joining them. It might be hard to see, but property will end up on the nose eventually.

    • I find our local paper in SE Melbourne is lighter and the Saturday morning papers also seem a smaller roll. You would think that with housing stock increase would encourage more advertising however I think the advertising budgets are now reducing.

  4. Sebastionbear

    Well, I live in the Adelaide Hills and what I am seeing is that many previously way over priced properties, particularly those with a few acres have dropped, $60k to $100k in price and now perhaps fall into the “reasonable” bracket and then are seen as low hanging fruit. 5 properties around here have dropped about $100k (from about $700k) in the last couple of months and 4 of them have sold.

  5. I’m another resident of the City of Corpses, capital of Hydroponica …

    The graphs show a huge number of FHBs in 09/10, so there was likely a carry forward of purchases.

    The mining jobs are not as prone to FIFO here because they are close to largish towns such as Whyalla and Port Augusta.

    There probably are people cashing out of east coast stuff. Even if they haven’t paid that off completely, they can likely pay cash for something in Adelaide. Also, the buying in Adelaide might be at the higher price end of the market, which might skew the price data.

    The price data only shows the prices on what has been sold, not what the general level of prices might be were we to have a hypothetical real estate version of musical chairs. The volume of sales, and especially a breakdown of that by price, buyer type and location would be interesting.

    • That description made me laugh!

      I lived in Hydroponica for about seven years prior to moving to the East (like a lot of other South Australians). Much as I still love City of Corpses I’m reminded of why I left every time I go back there – lack of proper public transport, no real jobs and a rapidly shrinking industrial base. It’s like the SA government jobs plan is to have everyone serving lattes or teaching English to migrants (as if that’s going to keep us going for the rest of the century!). Added to that is the fact that it’s almost as expensive as the East Coast now and you have a lot of compelling reasons to not want to live there.

      Adelaide (much like Darwin and Perth) has often moved out of synch with the rest of the country economically speaking. As others here have pointed out, it could be that a lot of former residents are moving back from the East Coast causing the spike?

  6. The volumes show buyer/seller standoff behavior identical to elsewhere. Ask this question again in 2 years. It will all come out in the wash.

  7. Maybe with this new “If you have a million dollars you can migrate to Australia” and they are all going to Adelaide, anyone noticed an increase in Chinese there? πŸ˜‰

    • I think the Chinese migration has been large across the board, without seeing the official data. It says much about the state of their own economy and the risks there.

      I was surprised to see large numbers in Hobart recently. It doesn’t strike me as a large Chinese drawcard, although the education is a key driver and it is a beautiful place.

      The Government obviously loves it.
      http://www.businessspectator.com.au/bs.nsf/Article/Rich-migrants-to-be-given-preferential-treatment-pd20120524-ULQDH?OpenDocument&src=hp5

    • DrBob127MEMBER

      It is my understanding that Adelaide has ‘regional status’ for the purposes if immigration. i.e. Adealide qualifies as a regional area and people who are willing to move here are accepted more readily by the immigration dept.

      • +1. I have met many british expats who have moved initially to Adelaide for this reason.

        • It’s why I’m living in Adelaide. Like most skilled migrants I came 5 points short to be able to settle as an independent skilled migrant (You need 120, based on occupation, age, language skills, health, spouse, etc).

          SA is happy to provide 10 points for State Sponsorship if you are willing to live in the State for at least 2 years and work full-time for at least 1.

          We’ll move though now that we have PR status…

  8. thomickersMEMBER

    I think its because one of their football teams is outperforming. πŸ˜›

    • Geelong and the Surf Coast outperformed there for a few years………and are now getting crunched. You might be onto something! Go Cats.

  9. Aristophrenia

    Going by those charts it would appear the lower priced properties are no longer impacting the figures, not sure on the algorithm but with only high end prices impacting the index surely this would have some relevance.

    • Going by those charts it would appear that Wile E. Coyote has stepped off the cliff and hasn’t looked down yet.

    • The same thing happened in California ’round about 2006/7… the FHBs left the market, leaving only the higher end properties changing hands. So the numbers looked artificially good for a little while. Probably a similar dynamic going on here too.

      • Yes. Anecdotally that is what seems to be happening here on the ground.

        The bottom of the market is hardly moving at all, with vendor discounts being apparent in the listings. Less low priced sales has to push the median up, yeah?

  10. reusachtigeMEMBER

    Surely we all know to take the RPData indices with a mine of salt yeah?

  11. Affordability. A friend of mine moved there recently and bought a nice 3 bed house in Brighton for less than 500 grand. You just can’t do that in any other city in Australia

    • “Affordability”? Nice 3 bedroom @ $500g’s is affordable?

      Is the average household income in Brighton over $150g a year (3x earnings)?

      Sorry… but your comment really brought me back to Earth to see just how far out of whack Aussie housing costs really are. I’m in Canberra and don’t disagree with your statement, but wow… it does put it in stark terms.

      • You can buy in Kaleen for under $500k and it’s closer to the city than Brighton and the home won’t be 80 years old…

      • dumb_non_economist

        campbeln, while I agree with you I wonder at times if we have moved beyond that metric. Using Perth as an example the medium is around 500k and I’d say average income would be 80k which would require the medium to come down to at least 300k. I just find it hard to envisage that occurring, other than a long term decline and when the economy picks up again I worry that RE prices will go with it.

        • DrBob127MEMBER

          “…the medium is…”
          “…the medium to come…”

          perhaps you are referring to the median?

        • There are places that are different and will “always” command a higher price, such as 150 on Amsterdam’s Herengracht canal:

          http://www.abc.net.au/news/2008-01-28/dutch-history-pointing-to-real-estate-fall/1025778

          Nice graph here:

          http://www.finfacts.ie/irishfinancenews/article_1019261.shtml

          Notice the oscillation around the average. Now… we can argue what we believe as individuals the “average” is, but I think we can also agree that speaking in REAL (inflation adjusted) terms property does oscillate around this “average” and I’d purport that we are FAR above that line, currently.

          I’m sure that this “prime” cut of 2.6 acres in Sacramento that sold in 2005 for $985,000 would “never” lose more than 86% of its value either…

          http://www.redfin.com/CA/Orangevale/7925-Hazel-Ave-95662/home/19049389

          …it sold in 2012 for $135,000 (I looked at buying it, it was still too expensive at an 86% discount).

          Housing is a durable consumable. It can only take up X% of income from households on “average” over time. 3-4x household earnings (5x-ish for some special areas) may not be the “true” “average” but I do believe that as a rule of thumb its still a handy metric.

          Lastly, note that historically, when housing has swung wildly above the “average”, it tends to swing wildly below it in the aftermath. So in Sacramento, I look at below 2x earnings. In 3-5 years I’ll be doing the same here in Oz.

          • PS- the “2.5-3x household earnings” rule of thumb is based on a “3 bedroom, 2 bathroom, average block sized, average floorspace sized single family home” for any particular area. Any home above or below this in features is adjusted from this guess-timation. I know this is a metric used in the States, not too certain if its used here (as most 3 beds are 1 baths!).

            Also, @dumb_non_economist, I hope you don’t take my reply as an attack of your position. I think we are both right, we just need to define our timeframes and what we believe “average” is =)

            As Australia is late to the global debt jubilee I think we will have a lot of catching up to do. Stir in the change in demographics (boomers retiring and selling their NG IP’s), our over reliance on China, our banks need to fund in the international markets, and the fact that of the 1.5+mil taxpayers with NG IPs, 1.1+mill earn less than 80k… we are in for a rollercoaster ride. The only thing laying across the tracks that MIGHT slow this thing down a bit is the BK terms here (the house doesn’t secure the loan, the banks can come after you for any shortfalls) so there is a tiny bit more skin in the game than in Cali, for example (as original loans in CA are non-recourse, refi’s on the other hand…).

            Anyway, stay safe out there, And keep your powder dry! We will have YEARS to buy “at the bottom” (whatever that means πŸ˜‰

      • campbeln, I think you might be missing that Brighton is a beach side suburb (IMO Adelaide’s best beach).

        I still think there is room for prices to come down in Brighton, but relative to other states (for similarly located properties, coastal/15km from CBD) it is very cheap.

          • I wouldn’t be surprised if the majority of households are pulling in 100k+. I don’t know adelaide that well, but if both are working it wouldn’t take much to bring home 100k.

            Lets say you work in Sydney or Melbourne for 5 years as dinks and save up 100k. That’s a 20% deposit on a 1 bed flat in Sydney or Melbourne, but represents a 20% deposit on a 3 bed house in Adelaide!

          • campbeln, It’s not a working class/mortgage belt suburb, so I would suggest multiple of income is not that relevant. From my observation a lot of the property that comes up for sale in Brighton is deceased estates or those retiring to assisted living, etc. Many homes here are probably owned with small or no mortgages.

            That said I would be surprised if average household income was below $100k in Brighton.

          • Thanks gents! Well, with tough no where near my cheek, there are always places that are indeed different. But even then it sounds like it may well be “reasonably priced”.

            As to household income, there would have to be some adjust for areas with large number of retired, as that would adversely effect the household income. but it is a “rule of thumb” so start from there and adjust as the situation requires (be it for a larger yard, a 4th bedroom or a mostly retired/pensioned household effected income ratio).

    • There is a place near my parent’s place – a new 3 BR townhouse, about 7km from the city eastern suburbs priced at $500k. It’s been on the market for 3 years.

      That being said, wages are lower in Adelaide compared to the rest of the country so while things may appear cheaper from an eastern states perspective.

  12. Could it be that higher value homes are selling, hence the change in ‘value’? I’ve been watching the market in Adelaide for over a year now and have definitley noticed prices slowly trending down in the low to mid $400s bracket. As an IT professional I can also vouch for the others stating there is very limited work options here. I would go so far as to suggest that Adelaide is not as affordable as it seems as wages on average are lower here and now house prices are quite high. Example as a software tester you can earn maybe $60k a year here perm or $50 an hour contract. The same roles in ACT/NSW/VIC will pay $80k perm and up to $100 an hour.. Seems this place still runs on old money.

  13. I haven’t read this blog-post yet but “Adelaide” getting it’s own post on MB is like a step-forward for South Australia! πŸ™‚

  14. tsport100MEMBER

    The cause? BS Data! All it takes is for ‘a few’ low-value sales to NOT be recorded and you have yourself a manipulated data set!

    How is this info physically complied and what scope is there for manipulation?

  15. I’ve been following some of the outer Adelaide suburbs very closely for about a year, and have seen absolutely no sign of increases. Properties are on the market for months and I see prices being dropped and undercutting each other before they sell. My theory would be that both the absolute number of FHB, and their percentage of total sales, is has dropped a fair bit. May of these would be in the 250-300k price range. Take these out of the market and wouldn’t you be left with an increasing median on lower volumes? Also, as far as new properties go, this is the end of the market that would be slowest to discount prices since they’re probably already struggling to make a profit after building.

    • Spot on.

      Near me, suburbs like Morphett Vale, Hackham, Christie Downs, and Reynella just aren’t moving for the high 200’s like they were a year or two ago. Standard 3×1 houses of 1970s vintage now selling for 230-240k.

      I’m in one of these suburbs looking to upgrade, but the lack of demand isn’t so apparent in the better areas. So I’d lose on both ends of the deal.

      But I think I just have to wait…

  16. Now, that I have read the blog-post, I might have an answer to your question “Any ideas as to what might be causing Adelaide’s housing market to outperform the rest of the nation?”

    It’s different here, we have wineries (which sells for 50% less overseas), great life-style (shops/restaurants not open most of the weekends), innovative-roundabouts (story later), warm weather (we were spared the heat wave this summer but apparently 40 degrees for four days isn’t considered a heat wave here!), Olympic Dam (layman does not know what it is but they all believe that it will bring riches).. and.. the list is long!

    Innovative roundabouts: After I moved here recently, whilst driving, i came across a round-about and i stopped at the entry to round-about because I did not know what was happening or what was supposed to happen.. i entered the round about took whichever exit was available.. stopped, went on google-maps, and “planned” my “entry-exit” on that round-about in order to.. get on to the correct road to reach my destination!!

    • haha brittania roundabout? Who’s bright idea was it to put a round about on a 5 ways where the roads dont actually converge?

      Probably the same people who thought it’d be a great idea to build a one way freeway!

      Yay for traffic engineers in adelaide!

      • one way freeway!.. thats another gem…. seriously, I think this is the only place in th world where a freeway runs in ‘one-way’ (morning it is in-bound only, evening it is out-bound only, right?)

        They should make this roundabout and one-way freeway a tourist attraction, atleast that might entice some tourists from the western world to see some “unique” things!

      • Sebastionbear

        Best way to “attack” the Brittania roundabout is with the ruthlessness of a bond floor trader. Dive in, doesn’t matter which lane, then aim for the exit you want with the foot planted.

        Guarranteed to work 99.97% of the time πŸ™‚

        • this is exactly how I approach it (just around the corner from my place!) thank god for fast cars and slow adelaide drivers!

          Seriously if you think drivers are bad in any other city come here and see what a country town it is. I routinely get stuck behind people doing 30-40 in a 60 zone lol

          • DrBob127MEMBER

            “stuck behind people doing 30-40 in a 60 zone”

            and they are just about always in the $%#*ing right-hand lane!!

          • >I routinely get stuck behind people doing 30-40 in a 60 zone

            After moving here, I have noticed that there are lot of retirees (not the rich ones), especially on centrelink aged-pension.

            Every week there has to one accident involving an aged driver, usually it goes like this “Mr.X was trying to reverse the car and stepped on the accelerator instead of brakes and ran over a pedestrian”

        • Alex Heyworth

          How many other intersections have their own Wiki page? en.wikipedia.org/wiki/Britannia_Roundabout

          Is this the solution? http://www.dieterfischer.com/BritanniaSolution.htm

          The somewhat similar roundabout in the ACT at the junction of Kings Avenue, Morshead Drive and Parkes Way has recently been replaced, at great expense, with an overpass.

  17. Alex Heyworth

    Adelaide didn’t experience the boom to the same extent as other capital cities. Hence the bust is having little effect (so far).

  18. Rumplestatskin

    Small sales volumes = high error. Plus maybe there are a few local factors reflecting the average leverage etc in various areas. But I wouldn’t read much into a couple of months data.

  19. South Australia was built on cheap coal, cheap labor, and cheap housing. None of those conditions exist any more. The state has no real economy, a bit like Tasmania. If that index is drifting up then there’s something wrong with it, or it’s simply a statistical effect.

    • darklydrawlMEMBER

      hah… I hope you are using the word ‘Coal’ in humour here. Ok, SA does have brown coal deposits (it is what fires up their world class brown coal power generation at ‘porta gutta’). But lets be honest. Brown coal is more often than not – dirt with some Kero poured on it – to make it burn.

      It is fiendishly hard to ignite and burns dirty to boot. Mind you, ETSA did very well with what it had in this area.

    • Great site.

      It shouldn’t be considered representative of Adelaide IMO, I’m sure you could walk around any city and capture a similar set of pictures, however this site captures many of the interesting buskers, degenerates and characters who I see every day. Thanks for the link.

  20. Sadly for Adelaide and SA much of this is true. 36 to 40 % of the population are on some form of welfare and the biggest industries are either the “government industry” or government supported industry.

  21. Thirty to forty years ago Adelaide had an air of prosperity – conservative with a scent of old money.
    Now it is full of bogans.
    Jerry, you are 100% right.
    BUT, as an Adelaidean, I can attest to the fact that I can still park in the CBD for nicks or for a few gold coins, I am 10-20 minutes from anywhere, there are hardly any queues, the weather is fantastic – especially winter but not summer, there are great family beaches and great cycling tracks. There are good medical services and occasionally a famed star performs in our fair city.
    Its good enough for me and if house prices crash – great.

  22. We got pipped on a house by a local buyer. Originally 370k, we offered 250k after it had been on the market for two years with no offers. The RE agent used our offer to lever the other to ‘very close’ to the asking price of 300. They await finance. It happens.

  23. Lived in Adelaide most of my life, with stints in Seattle, London, Sydney, Melbourne & Brisbane. All good.

    Adelaide’s like a big country town. Pros & cons. Main advantages are cheap cost of living and low travel times. 60+ mins to work in Sydney or 90+ in London was insane. 10 hours less travel time a week, or 20 full days a year, or more than 2 years over a working life less time sitting in traffic is big unquantifiable plus.

    But in those big cities, everyone has to wait in line, so you get used to it, kind-of like Soviets got used to lining up for bread. Doesn’t make it good though.

    Bro just bought a 3BR fixer-upper on 550sqm for $270k in Adelaide 25min from work in CBD (15min off-peak) and 5min from beach. Easy to rent <$300/wk near wherever you work. I've never paid more than $200/wk as a single person. Thinking of cutting costs by share-housing in brand new apartment on main street in CBD, 2 bed 2 bath w/balcony, $350/wk total ($167.50 each). Just as cheap, or cheaper, to live by beach.

    Main disadvantages are shrinking manufacturing and less job opportunities, ageing population (in danger of becoming retirement state) and hence increasing conservatism, high welfare percentage and public sector unions forcing govt finances into high debt load.

    As for RE, no major price drops noticed yet, but discounts increasing. Stock on market and time on market increasing. Holiday/beach home market over-saturated. Anecodotal evidence of houses/land "just not selling". Overseas students down so city apartments going cheaper. Prelude to a bubble deflation, me thinks, but RE boom mentality still strong.

    Been looking at ex-public housing 3BR homes in outer suburbs as IP for around $130k renting for $150/wk+ to welfare recipients. Some on market for years.

    Mining boom limited. 6,000 direct mining employees in state of 1,600,000. Second highest average household income by suburb is Roxby Downs, town near Olympic Dam mine (after affluent inner North Adelaide) but there's still ex-public housing available for purchase under $100k in nearby regional centres like Port Augusta or Whyalla. Might be good investments if BHP goes ahead with expansion.

    Currently earn $65k. Was offered $70k for same job, same company but in Sydney. No thanks. Life here cheap and too easy.

    • As an Adelaidian — Good summary.

      I’m watching house prices in the Adelaide Hills. They have fallen slightly, but the stock on market has increased significantly, so it seems only time before larger falls take place.

      For those complaining about Adelaide’s shopping hours, note that they only apply in the inner city. I live 15 mins from the city in the hills and have late night and weekend shopping which is great.

      As for things to do outside Adelaide?

      We have some of the world’s best wine regions with great food (Barossa, Clare Valley, McLaren Vale, Adelaide Hills).

      We have great beaches from the calm city beaches all the way down South if you want a bit more swell.

      We have virtually no traffic congestion when compared to other capital cities. Inner city parking is cheap, outer shopping centres have free parking.

      Cost of living is low compared to other capital cities and it’s a very safe place to raise a family.

      There is certainly some conservatism, but it doesn’t compare to the incredible conservatism I encountered while working and living in Perth. Over there, you can’t even get council approval for an inner city bar, so there’s no night life. If you want great night life Sydney and Melbourne are definitely better places, but if you want to raise a family / do other stuff than just party and drink, then Adelaide is the ticket.

      It is also great for business – a 15 minute / $10 taxi ride from the city to an International Airport (recently upgraded) or a similar fare to nice beachside apartments in Glenelg. 1hr to Melb, 2hrs to Sydney, 3hrs to Perth.

  24. Hi,

    Having lived in Adelaide, Sydney, Melbourne, Malaysia and London, I would have to say that I prefer Adelaide. Yes the roads are not great, but Sydney’s seemed to have been thrown in the air and paved where they fell. London’s are just crazy and Melbourne is one of the only cities in the world where I really felt unsafe walking around at night.

    Malaysia’s roads take the title as most chaotic though. Road rules seem optional, along with the lane markings.

    I would live in any of those cities again, loved them all for different reasons. London’s vibe, Sydney’s harbour, Malaysia’s scenery and Melbourne’s food.

    Its conservative here, far too conservative. The only jobs you can get without commuting to Melbourne or Sydney for the week are mac jobs. Despite what the government adverts on the airlines say about Adelaide being the IT Capital of Australia. I damn near wet myself when I saw those a few years ago. Maybe they counted punching a register at McDonalds as an IT job.

    As for mining. What mining. Economy going backwards, housing market anecdotally has dropped in volume by about 6 months worth of sales per annum.

    But everything is fine?

    • Adelaide *should* be the IT capital, it has all the right ingredients. Cheap living, great lifestyle and easy access to the world vi the Int’l airport that is cheap and quick to access.

      … unfortunately all the govt. has done is put up some billboards, although UniSA has done a bit of good stuff at Mawson Lakes.

  25. I’ve had my eyes on the Waymouth st ‘lifestyle’ apartments for a few years. When they were being built, I was keen on the idea of an investment property. But they’re tiny and I figure if I wouldn’t want to live there, then I shouldn’t expect too many others would either. They started at 175k in about 2008 and I saw one for mid 130’s recently.

    Not all of Adelaide is rising.

  26. Adelaide is great if you can go across on east coast / APS wages! What makes you feel like an average pauper in Sydney or Canberra makes you feel like a very rich one in SA. That said, wouldn’t currently buy in Adelaide. So much cheaper to rent.

    It’s a shame other things (clothes, technology, whitegoods, cars) aren’t as cheap … they seem to be priced much more on a national basis. Food, education and housing is nice but it doesn’t make for a complete life.