Does Adelaide have an over supply of new properties?
According to recent research, Adelaide has been building approx 18,000 new homes a year yet our demand has been around 6000 per year.
On a positive note ,the Australian market in general has reached an equilibrium where supply and demand have become near equal. This is the first time since 2010 where since then we were building 167,000 new dwellings a year with a demand for 121,000.
Currently we are building approximately 139,000 new dwellings with 137,000 needed.
The states with more demand than property currently are NSW, QLD & Perth.
So does this mean that Adelaide is a poor option for a property investor and the above markets are where you should invest, absolutely not, what it tells you is that there are places in Adelaide where there is way too much supply to meet demand, this will result in poor growth until this turns around.
Therefore it could be a good time to pick up a bargain in these areas now and wait until the supply to demand ratio turns around. Warren Buffet's golden rule is buy when people are fearful and sell when they are greedy.
Further, every market has smaller markets, therefore you can not rely on broad research for an area, sure there is a mass over supply of new builds in the North & South of Adelaide, however within 10kms of the city, there are many good value areas where no more land is available. These could be the gold mines where you purchase now at a discounted price due to market conditions with the expectation the demand will greatly out strip supply once the market turns.
As you can see this is just one part of the equation in becoming a successful property investor