Adelaide: Hectorville

Do you in Adelaide think this suburb has good potential, or in undervalued?

It is adjacent to Tranmere, and on the fringe of many prestigious suburbs such as Kensington / Evindale / Toorak Gardens etc. Close to many schools, being within 5 minutes of Rostrevor College, Pembroke, Norwood Morialta (in the school zone), St Josephs Hectorville.

New construction around the place, with Nutri Metics being demolished, and ive been told a Harvey Norman or similar will be constructed in its place.

One downside is that in sections, there still are a few housing commission homes, but these are quickly being knocked down and replaced by 1 or 2 new dwellings.
 
Do you in Adelaide think this suburb has good potential, or in undervalued?

It is adjacent to Tranmere, and on the fringe of many prestigious suburbs such as Kensington / Evindale / Toorak Gardens etc. Close to many schools, being within 5 minutes of Rostrevor College, Pembroke, Norwood Morialta (in the school zone), St Josephs Hectorville.

New construction around the place, with Nutri Metics being demolished, and ive been told a Harvey Norman or similar will be constructed in its place.

One downside is that in sections, there still are a few housing commission homes, but these are quickly being knocked down and replaced by 1 or 2 new dwellings.

I've lived near Hectorville (Kensi), play football for Hectorville and went to school at Norwood Morialta, so I've seen its transformation over the past 10 years or so.

Hectorville has now caught up/is being priced at the same/similar values of neighboring suburbs e.g Magill, Tranmere. But if you can find an old weatherboard/housing commission and subdivide there is still money to be made.
And the Tranmere side of Reid avenue is the better part of Hectorville. But yes, lots of activity in Hectorville in the past 10 years and will continue to be until most of the weatherboards/HC's are gone.
Can't really see a much of a downside to buying an IP here.

Go for it I say! :)
 
If you look at what's happened to values in Payneham South amd Tranmere over time, it's not unreasonable to expect a ripple effect in Hectorville.
I think Hectorville is quite a small suburb. This can often cause them to fly under the radar a little and present some interesting buying opportunities.
 
I've lived near Hectorville (Kensi), play football for Hectorville and went to school at Norwood Morialta, so I've seen its transformation over the past 10 years or so.
Argh. Other half went to that school :rolleyes:

Hectorville, Rostrevor and most of Magill (I might be mixing suburbs up here) used to be hideous 10 years ago, all those timber housing commission houses. But being so easy to knock down and on huge blocks, last time I checked most of them are gone with 2 or 3 new houses in their place. One of the inlaws has one of these teeny tiny infill houses from one that got divided into 3 - it just got valued at $485k, which I think is a bit steep but I'm sure it makes someone thinking of developing in the area salivate like crazy.

I think the best time to buy there would have been 5 years ago but I'm sure there's still crappy old houses left to buy and replace :)
 
Imo Hectorville was discovered long ago. My brother bought a couple of blocks there years ago when priced similar to other suburbs that have over time lagged in growth.

I remember the place as being full of timber framed homes on 1000sqm blocks. Now a large proportion of them have been developed and from what I gather from my builder brother profit margin for building is tight.

Still I do think growth will continue to be good due to it's school zoning and proximity to desirable suburbs.
 
I'd definitely say Hectorville has good potential in the future, but as to whether it's overvalued or not at present I won't comment.

It's a good location, next to other desirable suburbs, close to the city and definitely lots of development. Plenty of the usual 1 down 2 up jobs, but the old fellas (or I guess their families) are also selling off the last of the market gardens including the big one on East St. Buying an old one next to a new development like that would do well (if it's not already priced in) as you generally get a higher price when there's a whole bunch of new ones as opposed to one off's.
 
Just what i was thinking.

An old house would be great, but not sure if i have the equity behind me yet as i purchased my first IP 2 months ago. I would be able to purchase another unit, but not sure if they would have the demand in the suburb as say a new house.
 
Just what i was thinking.

An old house would be great, but not sure if i have the equity behind me yet as i purchased my first IP 2 months ago. I would be able to purchase another unit, but not sure if they would have the demand in the suburb as say a new house.

I've got a few units (or villas as they call them across the border) near there.
There is huge demand for them by owner occupiers and tenants alike.
 
The Property Professor has been raving about Kensington being really good value at the moment. Depends on what you think of his opinion but I tend to agree that a few of those suburbs don't get talked about with the same enthusiasm as some of their more destinguished neighbours. This I feel is a good sign for growth.

IFBB, where did you hear the Harvey Norman rumour from? I feel it wouldn't normally be a location they would be interested in. They seem to be going more into the bigger centres than being in 'isolated' spots (major roads but smaller complex).

Gools
 
The Property Professor has been raving about Kensington being really good value at the moment. Depends on what you think of his opinion but I tend to agree that a few of those suburbs don't get talked about with the same enthusiasm as some of their more destinguished neighbours. This I feel is a good sign for growth.

IFBB, where did you hear the Harvey Norman rumour from? I feel it wouldn't normally be a location they would be interested in. They seem to be going more into the bigger centres than being in 'isolated' spots (major roads but smaller complex).

Gools

He's always about 3-5 years too late. He's been talking Christies Beach up for many years now. Can't see the attraction myself.
 
He's always about 3-5 years too late. He's been talking Christies Beach up for many years now. Can't see the attraction myself.

I found him interesting back in the day, but his recommendations aren't exactly earth shattering revelations. Always next to or near the CBD or next to or near the beach. I can give you a list of 100 suburbs like that if you like. :D
 
I agree, a good time would have been about 3-5yrs ago.

If you're looking at Hectorville from a development perspective, the original blocks are selling around low-mid $400Ks but the new courtyard homes are only selling around the mid-high $400Ks so there really isn't any money in it...actually based on those figures you'd be in the negative :eek:

To make any decent money if you have to buy in low-mid $400K's you'd need to be able to sell the homes (if there's 2 of them) high $600K's...general rule of thumb we work on but then again everyone's got different margin expectations etc.

Hope this helps!
 
The Property Professor has been raving about Kensington being really good value at the moment.
Kensington (gardens/park too) is a funny suburb. A real mix of huge mansions, enormous houses, very ordinary houses and mouldy little units. It always surprises me how they manage to squeeze horrid little concrete brick unit blocks into what otherwise appears to be a posh upmarket inner eastern suburb.

I had an ultrasound in Kensington (at least I think it was Kensington anyway) the other week, it was in a MASSIVE converted mansion on enormous landscaped grounds, totally surrounded by huge houses on monstrous blocks with tennis courts. Looks very expensive. If it wasn't for the fact that the suburb is so close to all the inlaws, I'd probably put it at the top of my list of places to live in Adelaide. Location being important though, I'll stick with being out here, 200km away :)
 
Gools, my father is in the building trade, and was told by one of the people who worked there that he thought they were building a Harvey Norman / JB Hi-Fi type of store. This hasnt been confirmed, and is still just rumour. It could be good though, as you either need to go to the city, or Modbury/Pooraka to find something similar.

Dont know what they are on about with Kensington. It is already up there with Burnside / Leabrook etc for price, so maybe he was talking about in 2005 it was a good place to buy.

For the time being, i would be more looking at a unit, or a house to rent out as opposed to developing on a block. Most of the blocks around here are between 700 - 900m2, and have seen some of the older houses go for $400-$450k. With new houses on subdivided blocks going for $500+, im sure there is plenty of potential to make some decent profit off it.
 
Top