I love Adelaide.
In recent years the only impetus in the local economy has been coming from public sector wages growth, which I believe is a dangerous game to play for property investors.
I'm not an advocate of investing in mendicant economies such as Adelaide's economy is at the present time, or locations such as Canberra where bureaucracy effectively is the economy and the potential for land release forever looms as a threat which could cripple the over-priced housing market.
Similarly I'm not buying in Perth at the moment since the economy has moved into a downturn phase as the mining investment boom unwinds, though the Perth property market's time will eventually come again in the years ahead.
The problem with so much property market commentary is that it comes from the point of vested interest and therefore when a city or region within a city has an economy which is weak - and I assume here that commentators do actually look at the economy as they claim to - the facts are glossed over.
Employment growth in reverse
But I can't see how public sector wages growth offers a compelling case for property investment.
Local Adelaide property expert Peter Koulizos adds a couple of places to avoid within the city of Adelaide:
"Peter Koulizos’ places to avoid:
It is on the edge of the metropolitan area and has a mixture of low-quality housing and high supply of new houses.
“Well, we still subsidise South Australia don’t we,” she laughed.