What you think of Adelaide?

What do you guys think about Adelaide? I notice prices in Adl has gone a bit crazy in 2009 and now, which are like prices in Melbourne. Do you guys think it's overvalue in Adelaide? Or they are solid growth?
 
I would say there is more growth to come, especially in the inner suburbs.
There is still much pressure on prices and the demand seems to be strong. That's not based on any hard statistical data, but from the feeling I'm getting on the ground as I do the rounds of open inspections etc.
There is also very strong rental demand, provided the asking rent is in alignment with the market rate.
I'm expecting big things here in 2010. The net value of my portfolio is up 37% over the past 12 months. I don't expect the same level of growth in 2010, but I'd be happy to see half that (or a bit less).
But don't tell everyone, or they'll all want a slice of the action.
Sshhhh. Secret Squirrel ;)
 
I would say there is more growth to come, especially in the inner suburbs.
There is still much pressure on prices and the demand seems to be strong. That's not based on any hard statistical data, but from the feeling I'm getting on the ground as I do the rounds of open inspections etc.
There is also very strong rental demand, provided the asking rent is in alignment with the market rate.
I'm expecting big things here in 2010. The net value of my portfolio is up 37% over the past 12 months. I don't expect the same level of growth in 2010, but I'd be happy to see half that (or a bit less).
But don't tell everyone, or they'll all want a slice of the action.
Sshhhh. Secret Squirrel ;)

Haha, thanks for sharing, Rob. Yeah, I do like Adl, but just that people been telling me like, the prices here are grown on speculation whereas places like Melb have good reasons for solid growth. I am not sure...as I already got a few in Adelaide, not sure if I want to continue here or look elsewhere.
 
Haha, thanks for sharing, Rob. Yeah, I do like Adl, but just that people been telling me like, the prices here are grown on speculation whereas places like Melb have good reasons for solid growth. I am not sure...as I already got a few in Adelaide, not sure if I want to continue here or look elsewhere.

I don't believe that the speculation argument makes a lot of sense.
The fundamentals here are very strong.
Given that investors make up around 5% of the population and given how tight credit policies are at the moment, it's hard to fathom how that tiny percentage of the population could get enough credit to push up an entire capital city market, even if they did behave in a cohesive manner.
The activity I'm seeing on the ground has been almost totally owner occupier, including many FHB, who are keen to get something signed up before prices outpace their ability to save a larger deposit etc.
 
What do you guys think about Adelaide? I notice prices in Adl has gone a bit crazy in 2009 and now, which are like prices in Melbourne. Do you guys think it's overvalue in Adelaide? Or they are solid growth?

The ABS data released today is saying Adelaide had the slowest growth of the capitals in 2009 - 5.1%. I also read somewhere else that it's still the cheapest mainland capital.
 
Adelaide is still largely owner occupied in inner suburbs because of the reasonable asking prices, so I don't think you'll ever lose value. Having said that, there are a lot of undervalued suburbs IMO
 
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