Adelaide A Hot Spot For 2016

Published : 18 January 2016

Adelaide in South Australia has been hotting up of late - and that's not just the temperature!

City fringe enclaves look to be some of the hottest suburbs to watch in 2016, following on from a boom in the CBD.

Apartment sales in the CBD skyrocketed last year, jumping nearly 30% in 12 months, largely due to new and updated city facilities, such as the Adelaide Oval, and new developments.

That growth is now expected to flow out to the suburbs, with Croydon, Bowden, Brompton and Torrensville already showing strong movement, with the median prices steadily increasing.

Historically, an increase in apartment sales will lead to an increase in house sales, as investor confidence moves through the market.

The latest housing finance figures released by the Australian Bureau of Statistics (ABS) show a continued increase in owner-occupier lending nationwide.

REIA President, Neville Sanders said the lending figures show that owner-occupiers continue to have a greater presence in the stabilising market.

And it seems fixed rate home loans are the product of choice at the moment, a trend that looks set to continue this year.

National lending figures released by Mortgage Choice confirm that during December, fixed rate loans accounted for 19.44% of all home loans written during the month.

Mortgage Choice chief executive John Flavell said the increase in fixed rate loans was hardly unexpected given the recent interest rate rises levied by many Australian lenders.

According to Mortgage Choice, fixed rate home loans are at their most popular in New South Wales, where they accounted for 25.35% of all loans, followed by South Australia (20.25%) and Queensland (19.13%).