Is Adelaide hotting up again?

[weg]

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

I think Kilburn has great potential, just not at the northern end, and the northern end between Churchill Rd. and the railway line.

The gentrifying of the Southern end seems ongoing, with many private buyers knocking down old houses and building homes on mostly full size allotments atm.

Homes still going up in the new estate also.

If I was starting off I would probably consider buying to live in Kilburn, and I would probably prefer an IP in Kilburn over Blair Athol, unless I was buying very near to the boundry of Prospect.

Parts of Prospect are also a whole different world to Medindie and Fitzroy but people still live there .

 

[granev]

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%)...

You are kidding arent you - you are judging the entire Adelaide rental market on an overpriced property in Prospect - there are plenty of places in Adelaide you can get way better than 2-3% yield.
I would have thought Prospect was a suburb you bought for growth , not yield - Im sure there are places in Qld you will only get 2-3% yield

 

[tkhn02]

You are kidding arent you - you are judging the entire Adelaide rental market on an overpriced property in Prospect - there are plenty of places in Adelaide you can get way better than 2-3% yield.
I would have thought Prospect was a suburb you bought for growth , not yield - Im sure there are places in Qld you will only get 2-3% yield

I based it on this report: http://resources.news.com.au/files/2010/02/19/1225832/362978-an-property-guide-city.pdf

 

[Player]

Here's some commercial Adelaide heat:

http://www.theaustralian.com.au/bus...up-tower-for-75m/story-e6frg9gx-1225862762970

 

[Sunfish]

Keep in mind that the big mining projects in SA (Olympic Dam the biggest) won't go ahead while the threat of the super-tax hangs over the miners.

If the big international miners go ahead with some big projects they will signal to all the other banana republics that they can get away with high taxes too. The miners won't allow that to happen. Gottliebsen calls it a strike of capital.

 

[Player]

Yep, I also read the article to which you refer Mr. Fish:

http://www.businessspectator.com.au...ent-tax-pd20100506-56SMK?OpenDocument&src=sph

At the end of the day, whether it's SA, WA or QLD or anywhere in Aus, the discretion is that these industries can pack up their toys and go play elsewhere.

 

[steveadl]

Spot on Sunfish. Olympic Dam expansion cancelled would definitely not be a good thing for SA.

 

[truong]

What do you think about Hindmarsh Island? Will it has potential? http://www.realestate.com.au/property-house-sa-hindmarsh+island-106349068?activeSort=price-asc

Land prices in Hindmarsh Island haven't moved for the last 5 years, some have even gone down, just picking up a little in the last 12 months.

 

[steveadl]

Land prices in Hindmarsh Island haven't moved for the last 5 years, some have even gone down, just picking up a little in the last 12 months.

I didn't think it was an 'island' anymore? Or has the rain separated it from the mainland again?

 

[Dazz]

Steve or anyone else....got any data on recent Royal Park movements ??

 

[steveadl]

Steve or anyone else....got any data on recent Royal Park movements ??

Not a huge amount Daz, only 8 industrial sales since 1/1/09. All under $1M except for:

4 Symonds St. $1.155M in Feb '09, 2004m2, looks like it's been for lease since before it sold at advertised price of $28k pa - still on the market with Savills apparently no takers.

Nothing of your size. Some bigger sales in Regency Park of $6.5M for 1.5Ha, $4.9M for 1.1Ha, $3.68M for 0.7Ha. Wingfield sales since 1/1/09 include $10.5M for 2.9Ha, $6.6M for 0.8Ha & $2M for 0.35Ha. Let me know if you want further details on any.

 

[Dazz]

So, given the lack of data, one may conclude ;


Royal Park is roughly about $ 5.7m per HA....but probably skewed way too high due to small block size.

Regency Park is roughly about $ 4.3 to 4.4m per HA.

Wingfield varies from about $ 3.7m up to 8.0m per HA.


Obviously the quality of infrastructure is playing a large part in the variance on the raw land values. Geez it's tough to half a$$ed accurately value this stuff.


I appreciate the data Steve - thank you.