Peoples thoughts on Adelaide?

I don't recall personally having any svr with a 4 in front of them in 2001, high 5s? Maybe I was paying too much.
Not low in comparison to today, but low compared with recent history at the time, there was a steep cutting cycle of rates over 2001 (6.25 to 4.25).
 
I purchased an old house in Kilburn in 2005 for $199,500. Rented fine, and in 2010 I demolished, subdivided, and built 2x 4br/2ba houses. Both are rented for $380/wk. They would easily be worth over $460K now as there's not many 4br homes available. Lots of new 3br homes being built, good ones are low-mid 400's. We've done well out of the suburb and I think it is only getting better with the new shopping precinct gaining more strength where the rail yard used to be. Quite a nice little hub going up there.
 
Adelaide 's starting to run - house in Seaton that went to auction today (I couldn't participate - waiting on latest finance preapp) with indications or fairvalue of approx $400K went for $470K.

The reserve was $400K! Bought by an OO who wanted to knock it down and build a mcmansion. Wonder if he'll get his money back in ST.
 
So based on a single auction result the whole of Adelaide is starting to run? Spruik somewhere else if you don't have anything more than an anecdotal story or two :rolleyes:

Based on the RP Data indices, prices are lower than May 2014:
http://www.corelogic.com.au/research/back-series.html

Pete Wargent's charts show SA engineering construction slipping away to the downside with the other mining states:

http://petewargent.blogspot.com.au/2015/04/capex-holds-up-icythus.html

Perhaps one sign of increasing interest in the Adelaide property market is the AFG lending stats released earlier today which show Feb-March were the strongest two months we've had in recent years, but as AFG is only a small part of the market and Adelaide stats are volatile I think time is needed to see whether it means anything.
 
Adelaide 's starting to run - house in Seaton that went to auction today (I couldn't participate - waiting on latest finance preapp) with indications or fairvalue of approx $400K went for $470K.

The reserve was $400K! Bought by an OO who wanted to knock it down and build a mcmansion. Wonder if he'll get his money back in ST.

Nice. Seaton is a decent area. What was the age of the house and size of the block?
 
So based on a single auction result the whole of Adelaide is starting to run? Spruik somewhere else if you don't have anything more than an anecdotal story or two :rolleyes:

Based on the RP Data indices, prices are lower than May 2014:
http://www.corelogic.com.au/research/back-series.html

Pete Wargent's charts show SA engineering construction slipping away to the downside with the other mining states:

http://petewargent.blogspot.com.au/2015/04/capex-holds-up-icythus.html

Perhaps one sign of increasing interest in the Adelaide property market is the AFG lending stats released earlier today which show Feb-March were the strongest two months we've had in recent years, but as AFG is only a small part of the market and Adelaide stats are volatile I think time is needed to see whether it means anything.

You can believe the stats but I'm hunting on the ground. It's not a boom aka Sydney but there is a bit of urgency in the marketplace particularly the 20km ring. I know because I was looking 2 years and 1 year ago - there is a diff. That's ok what do I know? You're right - stay away from Adelaide y'all.
 
So based on a single auction result the whole of Adelaide is starting to run? Spruik somewhere else if you don't have anything more than an anecdotal story or two :rolleyes:

Based on the RP Data indices, prices are lower than May 2014:
http://www.corelogic.com.au/research/back-series.html

Pete Wargent's charts show SA engineering construction slipping away to the downside with the other mining states:

http://petewargent.blogspot.com.au/2015/04/capex-holds-up-icythus.html

Perhaps one sign of increasing interest in the Adelaide property market is the AFG lending stats released earlier today which show Feb-March were the strongest two months we've had in recent years, but as AFG is only a small part of the market and Adelaide stats are volatile I think time is needed to see whether it means anything.

www.corelogic.com.au/media-release/...-second-wind-off-back-of-lower-mortgage-rates

Adelaide's YOY is 2.2%, which is ahead of Perth, Canberra, Darwin and Hobart, and not much below Brisbane.
 
You can believe the stats but I'm hunting on the ground. It's not a boom aka Sydney but there is a bit of urgency in the marketplace particularly the 20km ring. I know because I was looking 2 years and 1 year ago - there is a diff. That's ok what do I know? You're right - stay away from Adelaide y'all.
Adelaide's seen a reasonable bounce over the last 2-3 years from the 2012 lows, but in my opinion there is more evidence of growth now rolling over again.
 
College Park knocking off Unley Park as the state?s most expensive suburb

PROXIMITY to quality schools and the CBD has led to the leafy city-fringe suburb of College Park knocking off Unley Park as the state?s most expensive suburb.

College Park recorded a median sale price of $1.8 million in 2014, after failing to make the top 10 list in 2013.

It beat Springfield, which had a median of $1.56 million, Medindie ($1.6 million), Leabrook ($1.25 million) and Toorak Gardens ($1.15 million).

Rose Park, Unley Park, North Adelaide, Tusmore and Hyde Park rounded out the top 10, all recording a median sale price for 2014 of more than $1 million.

Gilberton had the most expensive units last year, with a median sale price of $670,000, up from 2013?s most expensive units in Henley Beach at $630,000.

College Park has not featured in the top five suburbs for at least the past five years, but last year recorded the highest median for the same period.

Klemich Real Estate managing director Oren Klemich, who also lives at College Park, said it had everything buyers were looking for.

?It?s a lovely city-fringe location, the architecture is uniquely unspoilt, the allotment sizes are large and there are a lot of quality schools nearby,? Mr Klemich said.

?There hasn?t been enormous redevelopment, particularly through the 60s, where we saw a lot of villas make way for cream brick flats, so you can drive down a street and see the same properties that were there at the turn of the century.?

Mr Klemich said College Park was a tightly held suburb with a relatively small number of sales a year which could significantly affect the suburb?s median.

?It?s a small sample so it?s a suburb where the median will rise and fall quite dramatically,? Mr Klemich said.

?Generally it?s one of the most highly sought after suburbs in Adelaide.?

He also said College Park properties represented good value compared with suburbs a similar distance from interstate cities.

?A $3 million villa in College Park would be a $6 million Victorian in South Yarra, so we?re still relatively fortunate our prices aren?t at the same level as Melbourne or Sydney,? Mr Klemich said.

Real Estate Institute of South Australia past president and Professionals chief executive Ted Piteo said Adelaide?s city-fringe suburbs, which dominated the top 10, would always fight it out for top spot.

?The reasons they?re sought after ? nice older homes, large allotments, closeness to the city ? are the reason they?re going to continue to vie for those top spots, and it?s unlikely you?ll get other suburbs creeping into those top spots,? Mr Piteo said.

Mr Piteo said College Park homes were bought by medical professionals, high income executives, lawyers and businesspeople.

?These are big family properties,? Mr Piteo said.

Mr Piteo said Tennyson was a coastal suburb to watch.

?It?s a seaside suburb and the only thing that?s holding it back at the moment is that it?s a little bit further out, but you will see as the infrastructure between it and the city is upgraded the price will continue to rise,? Mr Piteo said.

http://www.news.com.au/finance/real...expensive-suburb/story-fndba8zb-1227282004947
 
Adelaide 's starting to run - house in Seaton that went to auction today (I couldn't participate - waiting on latest finance preapp) with indications or fairvalue of approx $400K went for $470K.

The reserve was $400K! Bought by an OO who wanted to knock it down and build a mcmansion. Wonder if he'll get his money back in ST.

I'm not sure about Seaton since I haven't been following that area. But I believe the Adelaide market is very suburb dependent. I've been in the eastern suburbs market for the past 12 months and based on the numerous open inspections, auctions and sales history its highly obvious that the eastern suburbs market has picked up. To be clear, its mainly driven by foreigners wanting to get into the school catchment zones.
 
Hi Guys,

How is Aldinga Beach, O'Sullivans Beach , Christies Beach areas going ? Still some cheaper houses down there. Not much land available from what I could see. Do you see much long term potential for those areas ? Or still better to head closer to the CBD ?

Thanks
 
Hi Guys,

How is Aldinga Beach, O'Sullivans Beach , Christies Beach areas going ? Still some cheaper houses down there. Not much land available from what I could see. Do you see much long term potential for those areas ? Or still better to head closer to the CBD ?

Thanks

ALDINGA BEACH
Current Median Value-
325k
Median Value 2014-
320k
Median Value 2013-
315k
Change in Median Price 5 years-
6%
Change in Median Price 10 years-
86%
Median Asking Rent-
$295

CHRISTIES BEACH-
Current Median Value-
339k
Median Value 2014-
325k
Median Value 2013-
325k
Change in Median Price 5 years-
6%
Change in Median Price 10 years-
91%
Median Asking Rent-
$300

O'SULLIVAN BEACH-
Current Median Value-
270k
Median Value 2014-
282k
Median Value 2013-
257k
Change in Median Price 5 Years-
7%
Change in Median Price 10 Years-
100%
Asking Rent-
$300

Long term with population growth and the proximity next to the ocean you can't go wrong. In the short term South Australia's unemployment rate is continuing to climb and the local economy is struggling.

http://petewargent.blogspot.com.au/2015/03/adelaides-mendicant-economy.html

"Jobless figures later in the week showed SA still had the highest rate in the nation ? even higher than Tasmania. The statistics revealed that over the past 5 years the number of people employed in the state has actually gone backwards.".

There's a correlation between employment and capital growth, which is why the aforementioned suburbs have had minimal capital growth in the past 5 years. Adelaide is a very suburb dependent market though so some suburbs have actually gone backwards in capital growth in the past 5 years.

E.g Elizabeth Grove has decreased in median value by 9%.
http://www.yourinvestmentpropertymag.com.au/top-suburbs/sa-5112-elizabeth-grove.aspx

On the other hand inner city suburbs in the South have risen by 24% over the past 5 years, and that's pretty typical of all the suburbs within a close proximity to the CBD.
http://www.yourinvestmentpropertymag.com.au/top-suburbs/sa-5034-goodwood.aspx

It doesn't surprise me though because with the struggling economy the people who suffer the most are the young (inexperienced) and unskilled. When recessions occur it has the most affect on lower socio-economic areas because they are usually the first to lose their jobs and have the lowest bargaining power. In contrast skilled workers usually retain their jobs and their earning capacity and they can even benefit out of recessions by buying up cheap assets etc. A lot of people I know have been struggling in Adelaide ever since the GFC but obviously there's a lot of others who haven't felt it all. On a 10 year trend most of the outer suburbs have achieved just as much capital growth % as the inner suburbs particularly in the late 90s to mid 2000s when the economy was stronger.

On a national level the next couple of years don't seem too promising for Australia, and outer Adelaide suburbs in particular. So in all likelihood areas down south in Adelaide are unlikely to experience much capital growth in the short term and the yields with the suburbs your looking at are nothing spectacular either.

With all that said your looking at a long term approach and the economy will eventually improve so it's still going to be a solid investment over time.
 
I'm really keen to buy another IP at the moment. Any good buys, let me know and I'm happy to pay a finder's fee. What do agents usually charge btw? Nothing around Eliz this time around, border to pos geared, expected capital growth, under $500k.

Does anyone here also own anything interstate? I've been thinking about buying something outer CBD Melb.
 
More than $400 million in city apartments under construction or in pipeline

More than $400 million in city apartments under construction or in pipeline ? even as new home market slumps


ADELAIDE?S CBD is experiencing an apartment boom, defying industry claims of a slump in the state?s housing sector.

More than $400 million of new apartment projects are under construction or in the pipeline as people take advantage of low interest rates, generous concessions and the appeal of city living.

In a sign of the strength of the market, buyers snapped up almost a third of the 220 apartments in the $110m Bohem development on Whitmore Square when it went on sale last Saturday.

Deputy Lord Mayor Houssam Abiad, who sits on the Development Assessment Panel, said recent planning changes and incentives were helping to boost demand.

?The State Government has had a big focus on getting more population in the city through things like planning reforms and the stamp duty concessions,? he said.

?A block (of land) that you could only build two storeys on, you can now go to 12 or 13.

?That is all starting to make an impact right now.?

Mr Abiad said the city?s cultural resurgence was making it a more popular place to live.

?The city is a much more vibrant place now than it was five years ago and people want to live here because of the lifestyle it provides,? he said.


Purchasers of off-the-plan apartments in the city are entitled to a partial stamp duty concession until June 30, 2016.

Jade Dickie, 20, of Findon has taken advantage of first-home-owners grants and stamp duty concessions to buy a unit in Bohem because she is attracted to the city lifestyle.


?I always meet up with my friends in the city, whether it is having dinner on Gouger St or shopping in Rundle Mall,? said Ms Dickie, who lives with her parents at Findon. ?There was a lot of savings to buying off the plan.?



But the Housing Industry Association says Adelaide is in a residential building crisis and has blamed the State Government?s decision to cut a housing construction grant for traditional houses as creating a ?housing recession?.

According to Australia Bureau of Statistics figures compiled for the HIA, councils approved 589 detached dwellings in February, down from 795 at the same time last year.


HIA SA executive director Robert Harding said the approvals data ?highlights the dire state of SA?s new housing activity? since the government cancelled the $8500 construction grant in December 2013.


?Importantly, while residential building activity is carrying state economic activity and productivity in other states, South Australia is missing the boat,? he said.

The Master Builders Association policy director Ian Markos said unless changes were made ?quite quickly? the housing market will get worse.


But Property Council SA CEO Daniel Gannon said approvals were increasing over a 12-month period when including apartments and units.














Business SA CEO Nigel McBride said ?we had reason to be optimistic after strong rises in building approvals across December and January, but unfortunately that trend has lost momentum into February.?

Although the government abandoned the housing construction grant in December 2013, it has provided a stamp duty concession of up to $15,500 for people who buy an apartment off-the-plan in the Adelaide CBD. That concession ends in June 2016.

Professionals SA real estate chief executive officer Ted Piteo said the boost in high-rise development in the city would provide a boost for the construction sector.

?You need a lot of people to build these high-rise developments and they take a long time to finish,? he said.

Mr Piteo said he believed many of the high-rise developments in the pipeline would sell and commence construction in the next 18 months.

?I think it is a great thing we are getting more apartment developments in the city,? he said.

?Adelaide has always lagged beyond the other capital cities when it comes to the high-rise apartments in the CBD.

?It?s almost as if Adelaide is growing up a bit because so many more people are embracing city living.?



GOING UP


? $110 million Bohem development on Whitmore Square. On sale.

? $100 million Eclipse project on Austin St. Approved subject to conditions.

? $100 million Vue development on King William St. Under construction.

? $70 million U2 on Waymouth St. Expressions of interest.


http://www.adelaidenow.com.au/reale...source=AdelaideAdvertiser&utm_medium=Facebook

? $40 million Palladium on Light project. On sale.

? $35 million Parkview Apartments. On sale.

? $9 million 60 South development on South Tce. Approved.
 
I'm really keen to buy another IP at the moment. Any good buys, let me know and I'm happy to pay a finder's fee. What do agents usually charge btw? Nothing around Eliz this time around, border to pos geared, expected capital growth, under $500k.

Does anyone here also own anything interstate? I've been thinking about buying something outer CBD Melb.

500k in Adelaide gets you into a multitude of suburbs, be more specific :p
 
Hi Guys,

How is Aldinga Beach, O'Sullivans Beach , Christies Beach areas going ? Still some cheaper houses down there. Not much land available from what I could see. Do you see much long term potential for those areas ? Or still better to head closer to the CBD ?

Thanks

Herron Todd White publication this month had some good info on vacant land values holding up well in the Southern suburbs:

"in the outer southern suburbs, land around
the Seaford and Aldinga areas has seen increasing
demand over the past two years, probably in the
order of 10%. This can be directly attributed to
two major infrastructure projects that are now
completed. Firstly the duplication of the Southern
Expressway which has noticeably improved travel
times to the area and secondly the extension (and
to a lesser extent the electrification) of the train
line from Noarlunga to Seaford has improved public
transport accessibility. These suburbs are also
located close to the southern beaches.
As an example over the past three years land prices
in Seaford Meadows have increased by approximately
15% with a 300 square metre site increasing from
$125,000 to $130,000 back in 2012 to approximately
$150,000 to $160,000 today."
 
Lots of talk about "SA economy" here (and so called "Adelaide market").

Re the SA economy, well... I guess it's the same as property market - there is no single market, market is fragmented and different areas and different types of property perform differently, even within the same suburb.... same with economy. The eastern suburbs economy for example is doing great, the doctors, lawyers, accountants and professionals are not complaining and the shops and restaurants are thriving...

...and prices have gone up in some of these suburbs and some types of property 10% or more in 1 year....

Conversely, there are large areas of ADL which I wouldn't touch. In a nut shell, I wouldn't pay too much attention to "SA economy" but would focus instead on micro-economy (supply and demand) of specific regions depending on your investment objectives and strategy. Macro stats can be very misleading...

Same with "Adelaide market" - no such thing...
 
The eastern suburbs economy for example is doing great, the doctors, lawyers, accountants and professionals are not complaining and the shops and restaurants are thriving...

...and prices have gone up in some of these suburbs and some types of property 10% or more in 1 year....

QUOTE]

Welcome to my world ;)
 
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