Adelaide market?

B

brays

Hi

It's been a few yrs since I've been on here. We've been living in Adelaide since May last yr and have just started actively looking around to buy a PPOR now that we are certain of the area we want to be in.

We have noticed the market has dropped since moving here, we still think the market will drop further but are hearing differing opinions.

We're looking at South East of the city, down to cross rd, up to Glen Osmond, Greenhill and Unley Rd.

Options are either to buy something renovated, something to extend or demolish and rebuild - keeping options open atm and weighing up costs.


Any thoughts on which way the market will go this yr (probably the how long is a piece of string question)?

Also, has anyone had experience with building an extension? Is it the most costly option of the 3?

Thanks
 
G'day,

My guess is as good as yours and all the other experts out there. Do a lot of looking, put in some low offers and see what happens.

In general, the southern suburbs I keep an eye on do seem to have a few more properties at the lower end, average time on the market is 5mths. We just got a contract on one of ours that is 5% below what we thought it would sell for, other offers where 6%-10% below and we thought it would sell quickly being at the lower end of the price bracket for the suburb.

Saying that, it's not across the board, seems more like a few agents are talking clients down for a quick sale, so there are cheaper properties but they sell faster, there are still plenty of properties at prices I would expect, and a few in the oh that's expensive bet it won't sell.

Have fun looking, negotiate hard.

Cheers
Graeme
 
Thought I should actually answer the questions.:D

brays said:
We have noticed the market has dropped since moving here, we still think the market will drop further but are hearing differing opinions.
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50/50

brays said:
Options are either to buy something renovated, something to extend or demolish and rebuild - keeping options open atm and weighing up costs.
Click to expand...
Depends on price. Hate buying renovated but if the numbers stack up, go for it. Big block crap house, demo and build new, like this option, big tick from me. Extend, depends on price, building style, appeal, location, etc. Keep your options open, don't go looking for 1 or the other, keep an open mind and look at properties with a thought toward either of the 3. Depending on price/location any of them could be the best option.

brays said:
Any thoughts on which way the market will go this yr (probably the how long is a piece of string question)?
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I still reckon in any market you can negotiate a good deal, you just have to be prepared to walk away, and make a few offers (maybe a lot of offers).

brays said:
Also, has anyone had experience with building an extension? Is it the most costly option of the 3?
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Yes generally it is the most costly on a price per sqm. But depends on wet areas, site, construction style, etc. Once again, get quotes and do a benefits analysis.
 
I am not an expert but have been watching the market in Adelaide since 1979 (age 19) when I bought my first home. You are correct that the Adelaide market has dropped somewhat and who knows what will happen from here? My sisters who live in the Mitcham area watch their local market closely and have begun frantically texting and phoning through potential bargains to my daughter in an effort to get her to buy there. Areas you are considering are blue chip that's why they are more expensive. Of course you buy much cheaper in the South and North of the city.

After the 80's boom the Adelaide market was stale for a long time but the lull in blue chip inner city suburbs was much shorter than that of the outer suburbs. IMO South Eastern / Eastern suburbs perform well for long term investment and are a nice place to live.
 
Not sure on the market South East of Adelaide, but since the beginning of the year the buyer activity in the North East of Adelaide has really picked up & quite a bit. May be a seasonal thing or maybe a change in the market. Since mid December 2011 enquiries have slowly escalated and really taken off in the last 2-3 weeks. Experiencing multiple offer situations, buyers missing out on property, many more calls & more emails, a real noticeable difference. Also talking with other agents I'm hearing the same thing. I believe the market will balance up a bit over the next several months & be not so much of a buyers market.
 
As a buyer I too have found more competition and less discounting in Northern Adelaide (which annoys me greatly) since December and makes me think prices will soon rise...

Good in the short term but not if you want to buy more for the long term!
 
You'll probably find that quite a few of the homes that have now gone under contract will be linked to other sales as quite allot of sellers who have been on the market for some time have found another house and could well have bought subject to sale and now that we are seeing more first home buyers adding a bit of fuel to the fire, this should now create quite a flow on effect. This is why I think it will balance out in the short term.

Also once a buyer misses out on buying what they want once, twice or even three times, then their next offer will often be submitted a little bit quicker & a little bit higher.
 
2 buys in NE suburbs

I had always read and have been told that Christmas is the best time to buy. I made offers on 3 properties around Dec 15.

Results were:

Property 1 on the market for $295,000 offered $250,000 cash. Bought it for $257,500.

Property 2 on the market for $290,000, offered $240,000 cash and bought it for $250,000.

Both the blocks are over 700 sq mtr with over 17 mtr frontage.

Waiting to see how the market will shape up in next 12 months as i plan to sub divide and sell one of them.
 
What an interesting little house, that first one you posted.

The second house is a street off from where my fiance's family lives. Area has had a lot of active redevelopment. On their street there is only a handful of houses left which aren't less than 5 years old.
 
CJay said:
What an interesting little house, that first one you posted.

The second house is a street off from where my fiance's family lives. Area has had a lot of active redevelopment. On their street there is only a handful of houses left which aren't less than 5 years old.
Click to expand...

This side of Wandana Avenue is in Port Enf council, easier to deal compared to Tea Tree :).

We are trying to chop off a block at the block without demolishing the house, it's getting tricky :).
 
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