Is Adelaide hotting up again?

Hi, am I delusional? I thought Adelaide resi property should be taking a big breather & prices to come down but this is what happened today.

Ex housing trust in Kilburn & in my opinion the ugliest bit of Kilburn. Admittedly subdividable & present house quite livable.

Agent quoted $270K but sold at $336500. One woman really wanted it badly.

I looked at the 400+ range & saw a couple that I thought had some cap gain potential notably one 2 storey house in Pasadena.

The $400 + per week rent is going to be the new norm in Adelaide.

Any Adelaide investors, your comments are welcome & sorely needed.

KY
 
Nah, not seeing much action in the (few) suburbs I'm following. Enfield and Clearview seem to be holding steady, Eliz Nth I've even been surprised by what I consider to be sales going through too cheaply (almost 7% yields) so have slightly revised some values over last few months. Other suburbs, similar story - not up, not down. But hey, that's just me. :D

Got a link to the Kilburn place KY?
 
Have been looking at homes around me in the inner north for a friend looking to buy in the 600K to 700K bracket for a while now, and they're either sitting on the market if overpriced, or getting snapped up if buyers think they're getting a good deal.

Another friend also had their house up for auction in the last 2 weeks, in the same area and price range with no bidders, so that got passed in (about 50K overpriced imo).

The market here appears stable enough, but with not enough buyers to drive house prices up.

And I've also been keeping an eye on Kilburn and much the same seems to apply there from what I've seen.

I second seeing a link to the property you're referring to.
 
Hi, can't provide the link. I picked it out of the Advertiser & personally went to take a look on Sat.

House in Prospect [Blair Athol really] around 400K Henrietta St, that one I really liked.

The ones in Kilburn are nestled in that corner near the Kilburn railway station. The express trains those running to Elizabeth & Gawler don't stop.

No one in their right minds will want to buy anything like it!! One auctioned today is 6 Sunnybrae Rd

But there're a couple of compelling reasons:
Jane Lomax Smith had been barrelling for the redevt of Islington Railway Stn may take a few years. That's why I'm not hustling to buy yet.
The area screams 'Develop me' but Housing Trust had sold to previous tenants. The one auctioned today was under instruction from Public Trustee.
I feel that whoever buys for devt may have to wait quite a few years for prices to take off. And so much depends on the neighbours.

The other reason and those of you who haven't been to Prospect Rd for a while, it's looking more & more like O'Connell St It's the reason why I was looking at Blair Athol & Kilburn.

If you're looking, a pair of semis [1 title 2 tenancies] on Tobruk Rd will be auctioned next week. Quoted @ $350K A bit more land, wider frontage, but next to ugly industrial land with a lot of barbed wire fencing.


Also an interestin one in Semaphore Pk & one in Peterhead.

KY
 
The lady buying the place in Kilburn was probably an interstate investor thinking she was doing well by buying near a railway station :eek:.

In all seriousness though the price does sound reasonable if the block can be developed.

In other parts of Kilburn large blocks start at 350K for a place needing work to 500K+ for a new build.

New villas on 300sqm blocks start at 400K.

In Henrietta St. Prospect, homes would range between 350K (if you're lucky) to 600K, so 400K doesn't sound expensive or like a new high to me.
 
There's the (possible) answer as to why it sold at that price - 6 Sunny Brae has double street access. Developer can subdivide off backyard while keeping original house. These sorts of deals always sell for a premium. Other than that it wouldn't have been subdivisable (sic?) unless you own the adjoining propertie(s). So personally I wouldn't take this as an example of the Adelaide market heating up.

For me though, I wouldn't consider buying in Kilburn on the western side of Churchill Rd - definitely the wrong side of the street.

More often than not if you see a strangely high price attained in a development area - it's because the buyer has a particular reason to be able to bid more. Double street access such as above demands a premium. I saw an ex-AHA house auctioned off in Enfield couple years back. Should have sold for about $330-350k'ish - poor b@$t@rd who owned the block next door had to go all the way up to $405k to get it because some other nut got carried away (don't know what the other bloke was thinking!). The guy who bought it could afford to pay 20% more than it would be worth to anyone else as it allowed him an extra block between his other one ie. to anyone else buying this place it was only possible to put 2 on, for this guy with the one next door as well he could fit 5. Can imagine he would have been p!$$ed though having to pay that much for it.
 
I guess it just depends where you look.

Where i have been looking lately, stuff is seeming to be on the market for a little longer than when i purchased my IP in December, but after attending an Auction in Kensington Gardens today where the sale price was $44k over reserve, i may be forced to think otherwise.
 
Guess it depends if the reserve was realistic, but if you're talking Kensi Gdns house then is $44k not a huge amount over in % terms?
 
So where do you think still a good place to buy within 10km radius of Adelaide CBD in term or CG and good rental returns? I got an IP in the top end of Prospect which bought for $570K nearly 2yrs ago but currently only rent for $410/week (probably time to increase the rent :) ) so I quite heavily negative gearing here... That's why I stop looking in Adelaide but turn to Queensland instead as it has good rent return (5-6%) compare to Adelaide (2-3%)...
 
Hi, that's why I'm interested in what you all have to say. I don't know what to think!

For a while it looked like there was going to be major corrections but now it's not at all clear.

Rents are under pressure I think. My PM put the rent up $20. The commercial tenants all got the CPI increase not a big one, just 1.6% but nobody made any noise & I bulldozed a bit & made everyone pay up & advance 1 month. We applied the late charges & they just paid up.

Re the Kilburn property, the determined lady might be the owner of the house at the back! Then she'll a nice devt parcel all in.

KY
 
Hi, looks like we're looking at the same type of properties. I attended this one. Sold for $463000.

A lot more than the agent expected! Smallacombe Sanderson seems to have a relationship with Housing Trust. A lot of their properties are sold through them.

The Kilburn ones went for > $500K

The ones on Albion Tce Campbelltown didn't sell. Vendor bid of $600-20 K
Probably can get 3 courtyard blocks on it.

628 Cross Rd Plympton is really nice. Around $600K when I left.

Makes my shops look a bargain by comparison. Around $400K to be auctioned on 1 July. Total nett rent $27000 p.a.

I have to look for depreciation around 20K for FY11 so will be looking for something I can build on.

KY
 
Hi kum

You attended the auction of the pair of maisonettes, did you bid for that?, Are there many bidders? what do you think of the price, is the price too much for the maisonettes houses from the housing trust? How much would it cost to sub divide the pair?

I heard the pair in killburn was sold at $395k, are you referring the one in Tobruk also from the same agent. Killburn is closer to CBD, it must be dearer.

What is the auction atmosphere in Adelaide, why the auction was in working day (Wednesday), not like in Melbourne, residential property auctions are always on Saturday.
 
Killburn is closer to CBD, it must be dearer.

Kilburn is close to the CBD but it does have some major issues. Make yourself aware of them before going full steam ahead. A search on the forum should help but it ranges from pollution issues to drug problems. Not to say there aren't bargains to be found, just that you need to do your research thoroughly.

why the auction was in working day (Wednesday), not like in Melbourne, residential property auctions are always on Saturday.

Most Housing Trust auctions in SA are during the working week. I guess that's to keep them from being too much of a sideshow and makes sure most attendees are serious.

Gools
 
Hi, the stories of drugs & shootings were what stopped me from buying in Kilburn & I long ago wowed never to buy anywhere near Braund St in Prospect because a newspaper report said it was the street most burgled!

But the proximity to the city is a big + and it's gentrifying before our very eyes. Jane Lomax Smith has her eye on Islington railway station too.

Port Adelaide is also getting big support from the govt.

Plus the Adelaide-Enfield council is the most pro devt & helpful council in Adelaide.

Back to what I saw over the 2 weekends - there's no letting up. The house in Semaphore Pk, very ordinary may have cost 10K to build, besel brick type but fairly usable layout & well maintained, auctioned for 300 thousand.

On 300m2 bought by a man in a wheelchair.

So the lower nearer city properties are being snapped up & fought over.

Outer suburbs seem lower. Seaford for instance. Don't know about Elizabeth.

Will be looking at Para Hills, specially with another interest rate hike.

KY
 
The age old question... where to buy, where to buy? haha.

Luckily i found this thread again, as threads on Adelaide are too few and far between.
 
Hi, the stories of drugs & shootings were what stopped me from buying in Kilburn & I long ago wowed never to buy anywhere near Braund St in Prospect because a newspaper report said it was the street most burgled!

KY

I live in Prospect! Kilburn & Blair Athol only 2-3kms down the street but it's the whole different world!!! ;)
 
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