Recently, Christopher Joyce reports that ‘there are signs that the modest coronavirus-induced housing correction may be coming to an end’, with Adelaide being no exception. Since the end of September, the value of homes in Brisbane, Canberra, and Adelaide have all increased slightly. Perhaps a little surprisingly, homes values across the eight Australian capital cities have only fallen 2.5% from their April 2020 peak. This is nowhere near the speculated estimates of between 10% and 30% nationally and with current term deposit rates below 1% and mortgage rates at 2.5%, the investor market should ‘start showing signs of life’, says Joye. Further, according to CoreLogic, the gross rental yield on apartments in Adelaide is 5.4%, giving owners the chance to positively gear. The Reserve Bank of Australia’s decision to increase the size and availability of its Term Funding Facility (TTF) will only improve these prospects. The TFF make sit easier for banks to offer cheap loans to households by provides all banks with access to around $200 billion of a three-year funding at a cost of 0.25% annually.
