Reply: 2
From: Ian Parham
'Evening Duncan & All
Yes, read that article on the net this morning. Seems that Adelaide once again experiences property orientated impacts to a greater degree than other states ie: 10% National quota of FHOG. (Pity capital growth in the past wasn't as aggressive).
This (impact) may also be applicable to any potential down turn...if ever it arrives! Or, is Adelaide simply at the stage where population has grown, money is easy to get, property is in short supply, and now as a result future capital growth should be fairly well insulated from the dramatic types of downturns other states have experienced in the early 90s (remembering that Adelaide went for an eternity with sweet bugger all growth, 1.5%, 3%...seemed like years!!).
In essence, it may be a bit of a boon for IP people in Adelaide in so far as riding any cyclical downturn...the landing may be softened perhaps.
I tend to think also, that the market has (as discussed on the forum from time to time) been driven by the media fetish with IP over the last two years or so...all the TV shows going around have suddenly turned all the mums and dads into property investors....all available supply has been soaked up. EG: Sim now owning Colonel Light Gardens ;>)
It was interesting the reference in the article to people's upbeat view of Adelaide economically etc. Adelaide is a bit like going to a Crows game...if they are in front everyone is cheering...if they are behind, you can hear a pin drop!! When Adelaide's economy, unemployment level and ambience is under the pump...property 'used' to feel the pinch too. Though I think things are a tad different these days...I really feel the local real estate market will get stronger. I have been away from SA for 6 years now, but have kept an eye on real estate during that time...The place is showing solid, steady growth right across metro Adelaide...even outer northern suburbs!!
Finally, given the article was written in part by an agent, I thought at first...oh here we go...but I must admit that when thinking about what has happened, and is continuing to do so in SA, that perhaps the whole article isn't too far off the mark.
Certainly I think people can find confidence in Adelaide property....confidence which not that long ago seemed very rare.
I'll post the link below.
http://www.theadvertiser.news.com.au/common/story_page/0,5936,3398882%255E2682,00.html
Oh, bugger me!...anyone know how to put in these damned links?? Help!!!
Otherwise, any further comments from SA investors???
Cheers Ian