Where to buy in Adelaide - Hallett Cove / Thebarton??

[steveadl]

Well, you just missed out on this one .

http://www.realestate.com.au/cgi-bi...er=&cc=&c=62042168&s=sa&snf=rbs&tm=1217216330

If I recall correctly, the asking price was low $200,000's, with visits in the 1,000's.

Nice one Weg.

One's I'm looking at are a bit bigger though.

 

[eightgrate]

Its Adelaide not Sydney!

People need to realise the desire to buy real estate so close to the city is not so important in Adelaide. I can understand in Sydney where the suburbs sprawl and the traffic is bad. But Adelaide is a 30 minute city. If you live within 10km of the city you can get there in 30 minutes on Bus (quicker on tram/train) and even quicker in the car. If you do decide to drive to the city, parking is comparably cheap and easily free after hours and on weekends.

Dont take my word for it, look at the value of some of Adelaides outer metro suburbs, along the coast and foothills. People are obviously prepared to pay for this life style.

Those suburbs that are inner city (North, East and South) are not expensive simply due to their proximity to the city, but its the surrounding amenities. e.g unley and Unley Road, Norwood has its Parade, North Adelaide has its strips etc etc. Then you have all the nice parks, leafy streets, nice schools etc in these areas.

The Inner city Western (and North Westerm) suburbs (Bowden, Brompton, Thebarton etc) are semi industrial, look horrible and for a very long time (if ever) wont match the nice feel of Adelaides premier suburbs. These suburbs dont have as much going for them in terms of quality family living, but will certainly appeal to young professionals and renters.

My advice is to pick a feel good suburb within 10km of the city. I live within 8km of the city and my suburb makes the likes of Thebarton look well..... pretty awful.

 

[ArJay]

My advice is to pick a feel good suburb within 10km of the city. I live within 8km of the city and my suburb makes the likes of Thebarton look well..... pretty awful.

Depends what your goals are tho...buying in the more affluent 'burbs at the moment means neg gear up the ying-yang...and there won't be any growth to speak of for quite some time yet IMO.

R

 

[Gools]

People need to realise the desire to buy real estate so close to the city is not so important in Adelaide....

If that's the case, can you please explain why land in the new Brompton sub divisions is selling for $1200/sqm?

Your statement would be more correct 5 years ago but not now. With land selling at those sorts of prices surely a lot of the industrial sites will make way for residential allotments and they will become a lot "nicer" areas than they are now. Thebarton included.

 

[steveadl]

EG, Adelaide is actually one of the most spread out cities ie. around 65km from northern tip to southern tip (and if we start to include Aldinga & MPW developments that 65km turns into 73km). So 10km and under would be considered relatively close to the CBD - it's only a '30min city' for people who live within that distance.

As the population increases, the number wanting to live within that distance only increases and the supply of land there is much tighter. The land down around Brompton is going for over $700pm2 and that's assuming you can get a decent sized block - most of it is only townhouse size at that price.

 

[Gools]

Steve, not in the latest releases mate. Check out the prices at City Edge - Brompton.
All but one block is over $1000/sqm with most well over that figure.
Gools

 

[steveadl]

Steve, not in the latest releases mate. Check out the prices at City Edge - Brompton.
All but one block is over $1000/sqm with most well over that figure.
Gools

Bloody hell Gools, that's a bit of a shock!! Good one though!

I was just looking at land sales this year and the average was around $700pm2 ish but perhaps that's because they were townhouse size developments averaging only 130pm2 size. VERY few house lots have sold this year - one recent sale in May at $525k for 375m2 confirms your figures - I thought it was mistakenly listed as land when it was actually a recently completed house (LTO does that a fair bit in new developments). Boy was I wrong!

For the record, only 4 house size lots have sold so far this year. Very tight supply! Plus they are cutting them so small as well - 279m2, 243m2!

 

[LynnH]

Plus they are cutting them so small as well - 279m2, 243m2!

That's a house size, surely, not land size??!!

I don't doubt that it is happening, Steve - but, geez, I'd have claustrophobia living somewhere like that!

Cheers
LynnH

 

[eightgrate]

Steve, not in the latest releases mate. Check out the prices at City Edge - Brompton.
All but one block is over $1000/sqm with most well over that figure.
Gools

Well if your silly enough to pay that much. Those prices have already factored on the best best case senario for the area, so not a lot to be made IMHO. In other words, the boat as been missed. Dont invest into an area thats boomed, fair enought if you want to live there at any cost.

Over the years I've learnt one important thing about up and coming areas, by the time you hear/read (including this forum) about an upcoming boom area, its too late. How do you find/know the next up and coming boom area before its too late? Well thats a closely guarded secret.

 

[steveadl]

All depends on your perspective EG. Some people might say Brompton has only now just caught up. Go 2km from the CBD in other directions like Norwood, Unley etc. and you're already paying that much for land. Some would say Brompton land value has now been corrected since it's about to be gentrified. Don't forget people also pay a premium for greenfield land and when it is part of a wider new development as opposed to a one off as a result of a 1D2U.

Some people anyway...

For my money, I'm quite happy to buy another 3km further out for less than 450pm2 and deal with the the 1D2U scenario (in an area where greenfield is selling for $550+pm2). You're right, a lot of people buying in the greenfield developments are looking to build their dream homes. Doesn't bother me, as long as the prices rise.

 

[eightgrate]

All depends on your perspective EG. Some people might say Brompton has only now just caught up. Go 2km from the CBD in other directions like Norwood, Unley etc. and you're already paying that much for land.

Give people a free block of land in either brompton or unley and 99% will choose Unley. Theres more to a suburb than proximity to the city.

 

[steveadl]

Give people a free block of land in either brompton or unley and 99% will choose Unley. Theres more to a suburb than proximity to the city.

Of course they would, because it's much nicer there already. 20yrs ago people thought Norwood was a 'slum' - now look at it. I wonder what people will think of Brompton in 20yrs after it's been gentrified over that time? You still think there will be an abundance of 2 hectare factories in Brompton in 20yrs when the owner could sell for $3,000pm2 and build a bigger factory in Salisbury at $700pm2? Looks what's happened at Bowden, is Gerard going to try and find new leases for the factories when he could make $xxM by selling it off to developers? ( www.clipsalsiteforsale.com )

Brompton will be a very different place in the years to come.

The developers make their money by thinking ahead and getting in before the masses - like they did with Brompton. Over 3Ha of that site was bought for less than $900k (granted they would have undertaken site remediation themselves).

 

[ArJay]

The developers make their money by thinking ahead and getting in before the masses - like they did with Brompton. Over 3Ha of that site was bought for less than $900k (granted they would have undertaken site remediation themselves).

Well said Steve....

R

 

[eightgrate]

Brompton will be a very different place in the years to come.

The developers make their money by thinking ahead and getting in before the masses - like they did with Brompton. Over 3Ha of that site was bought for less than $900k (granted they would have undertaken site remediation themselves).

How much developers pay for industrial land does not reflect the total cost of ownership. I know the Holdfast council recently sold a few thousand sq meters of land in Glenelg North for less than $150,000, but 2-3 million in clean up costs is needed as it is an ex Gas works site.

The trick is to look where the developers (large scale) will look next and get in first. I can think of several locations within 10km of the city that you could get into before major development takes place and make decent money rather than a post develpment investment that turns out to be pocket money.

 

[steveadl]

Of course not, that's why I said it excludes remediation costs.

One can pick areas where developers haven't moved in large scale yet, but the point I'm making is that once a developer comes in and does their thing - that sends (or helps send) land prices in the area up, especially if those values were lagging due to it being non-residential zoning. That doesn't mean people who subsequently buy into the area are over paying once the rezoning/development had been done which is what you seemed to be saying earlier on.

 

[eightgrate]

That doesn't mean people who subsequently buy into the area are over paying once the rezoning/development had been done which is what you seemed to be saying earlier on.

No it doesnt mean they are over paying in Bowden/Brompton, but what I was trying to say is the potential to make further substantial gains (e.g. for it to have a 2nd boom) arent very good as the area price has already factored in best case scenario. If you are looking for good capital gains, there are far better aquisitions to be made around Adelaide. In other words, the boat has been missed in Brompton.

 

[steveadl]

No it doesnt mean they are over paying in Bowden/Brompton, but what I was trying to say is the potential to make further substantial gains (e.g. for it to have a 2nd boom) arent very good as the area price has already factored in best case scenario. If you are looking for good capital gains, there are far better aquisitions to be made around Adelaide. In other words, the boat has been missed in Brompton.

OK I see what you're saying and fair enough. I agree with you in that there are better areas to buy (especially for land banking, future development etc) which have not already had the 'work' done. These are the areas I would buy into as well. But then we're a different buyer than the young couple who isn't interested in investing but just want to live in a nice new suburb close to the city.

Whether or not there will be future growth in Brompton is a matter of opinion though. As all other areas near the CBD grow, so too will Brompton.