A bumper day for stocks, then!
The market jumped upwards (XJO by +1.72%) in response to what was perceived to be a favourable (i.e. benign) inflation report which I detailed here.
Pharmaceuticals company CSL also blasted on to new highs of more than $62, way up from $27 in mid-2011.
Unfortunately for Adelaide, prices are still below where they were a year ago and are below their previous peak, in spite of the record low stimulatory interest rates. As I noted here, South Australia has been hit by a number of project cancellations following a correction in certain commodity prices.
I'm often asked why I prefer markets like inner- and middle-ring Sydney and properties in and around London to regional property markets, such small towns or those located 100-500+km from the cities where rental yields might be a little higher.
I can't tell you what will happen to regional markets in Australia over the next few decades, but it appears doubtful that the desirable suburbs in capital city markets will ever become significantly cheaper given the massive population growth being experienced.
Read me on Property Observer today here.