Would you buy in the Port Adelaide / Semaphore Area

[MoreIPs]

I would, and (even though I have relocated to Melbourne) would love to increase my portfolio here with IP number 4.

If you would, for what reasons? What do you think will be the effect on prices and yields as a result of those reasons?

If not, why not?

Suburbs are: Semaphore, Semaphore Park, Ethelton, Glanville, Birkenhead, Peterhead, Largs Bay and Port Adelaide

My view

Positives:
1. Employment - upgrade Semaphore Road, New Port Quays development, defence
2. Developments - New Port (2 billion) and Semaphore Road / Port Adelaide
3. Infrastructure - new light rail to Port Adelaide (proposed) - also outer harbour line upgrade with New Port
4. Seaside (all on or within 1.5km)
5. City 15-20 min drive / train to CBD

Negatives (none for me, but concievable):
1. Distance to CBD? (not an issue for me - only 14km);
2. Stigma associated with Port Adelaide area (once again I think this has changed)

My expectation:
Strong rental growth next 24 months (10-12% year on year - ie 30-40% better than adelaide mean growth in rents)
Strong capital growth (8% 2008, another 20% 2009-2010)

Any thoughts and others expectations?

 

[Player]

More to the point........wish I had.

I've been visiting Adelaide since a young child and had relatives who lived in Port Adelaide. Remember Ethelton and the Semaphore area quite well. Wasn't so pleasnt back then.

Hasn't the stigma gone now. Semaphore, from my reading over the past few years has become cafe society and quite gentrified. Similar to our Yarraville in Melbourne, except you can actually swim at Semaphore.

 

[MoreIPs]

More to the point........wish I had.

I've been visiting Adelaide since a young child and had relatives who lived in Port Adelaide. Remember Ethelton and the Semaphore area quite well. Wasn't so pleasnt back then.

Hasn't the stigma gone now. Semaphore, from my reading over the past few years has become cafe society and quite gentrified. Similar to our Yarraville in Melbourne, except you can actually swim at Semaphore.

I agree the stigma has gone, just wanted to balance up the negatives!

 

[Pablo]

MoreIPs,

I don't think you can really go wrong with the port area just stay away from the heavy industrial areas along Victoria road. There is also the new highway that is going to be built to gawler which will increase the popularity of Semaphore rd.

Cheers Pablo.

 

[weg]

The prices there have risen substancially already, and I think there is now better value in other suburbs, for comparable units and homes, close to adelaide beaches.

Transport and distance to CBD is good near all beaches along that strip through to Glenelg, and I think gentrification may have already been factored into the prices asked.

I also think you may have to deal with more problem tenants in the homes in the the less attractive parts, and lower end homes, for some time yet.

There are some great spots with nice homes around the port, but it's the cheap ones, that aren't so cheap anymore, that I have reservations with.

 

[Pushka]

Already have! So close to the beach, big employment boom with the Submarines and Defence, new transport links, and the demographics are changing rapidly.

 

[cgw]

Plus there a big plans to upgrade all of the old shopping areas, in particualar in the main area of Port Adelaide.
When driving down the main street there are new shops and businesses opening up all the time. These people all need houses to live in.
Even the old pubs around the wharf are having face lifts inside and outside offering outside dining.
Just stay away from the streets/pockets that have housing commission houses in them, unless of cse, you don't mind them as your tenant.

 

[eightgrate]

It will take 1 decade+ for Port to be Ok

Semaphore is OK and always has been as its right on the beach. Port Adelaide is a different story. You cant expect to build a few apartment blocks and all of a sudden the stigma and reputation has gone. The people who have always lived in Port Adelaide and give it a bad name still live there. It will take a long time before they go. The Socioeconomic demographics of the area arent the best. Not the sort of place i'd bring up a family.

I went to Port the other weekend and was glad to leave the place. Trust me, just go for a walk there and compare it to walking down the Parade or Jetty road!! It will be good one day but not any time soon. The new apartment blocks are very Ghetto and a far cry to other fine examples i've seen.

It took Glenelg 15+ years to go from its daggy image in the late eights to where it is today. I expect Port will take much longer as it wasnt too decent to start with. An area takes time to build and flourish, thats why the eastern suburbs are so nice. Tell me a school in the Port area that a surgeon would send their kids to????

After my stint at the Port I headed back down the coast via Henley, Glenelg and Brighton. Those established afluent beach side surburbs are so far better its not funny, and all closer to the city with tram and rail links. Oh and by the way those suburbs are better value than the Port as the prices at the Port seems to have factored in the best possible future scenario.