In this research note we depict the Purchasing Power Index of the median Adelaide property (PPI) over time.
This is one of the indicators we use to analyse real estate trends.
The PPI for the most recent calculation period being December 2022, is by default set to one (1).
In the graph, the PPI has progressively become exuberantly expensive over time, much like the other capital cities.
However, Adelaide has been a standout performer in that house prices have fallen marginally compared to Sydney and Melbourne’s double digit falls since their respective peaks last year.
The green dotted lines on the chart bound each property cycle with the PPI making lower highs and lower lows (i.e., property prices became extremely more expensive over time).
In technical analysis, this is a fallen wedge which may be interpreted that the PPI will increase in the future, and this may be achieved through further house price falls, higher inflation, higher interest rates, or any combination of these.
Will Adelaide house prices follow the other capital cities in 2023?
Authored by QED Realty.