The month in review: Adelaide property market updates
By Herron Todd White
The worst house on the best street is the war cry of those purchasers trying to tap into the keg of the champagne location. This mentality produces a different breed of buyer. A buyer who will sacrifice creature comforts, who will spend years waiting for the right property and who will downsize for the upside.
An abundance of champagne locations can be found within the inner-ring particularly to the north, south and east of the CBD. Purchasers are drawn to these locations for their proximity to Adelaide’s East End, North Adelaide and the Adelaide Parklands. Further, these locations are situated in proximity to a vast array of community services and facilities. Considered champagne are the suburbs of Walkerville to the north, Unley Park to the south and Norwood to the east. Equally the bubbles could be sprayed the length of those western suburbs which straddle the metropolitan beaches. Henley Beach Road provides a direct transport route west of the CBD with the suburb of Henley Beach situated at its conclusion. With the popular Henley Square at its epicentre, this is one of the most in demand beachside suburbs.
To buy at the entry point in these suburbs, purchasers will need to make sacrifices and seek out what other purchasers view as the undesirable. Properties at the entry price point may be poorly located within the suburb, may provide limited accommodation, may have no off-street parking and may be in poor condition. An open mind has to be kept for those desperately wanting to be in a specific location.
Walkerville is located within four kilometres of the CBD and is characterised by turn of the century homes on large allotments. Traditional 1960s to 1970s units are scattered throughout the suburb with the refurbished Transport SA building known as The Watson providing Walkerville’s first multi-level apartment complex. The suburb centres around the retail and dining precinct of Walkerville Terrace. Church Street, Walkerville is considered one of the premier streets within the suburb. Walkerville has a median dwelling value of $1.25 million and an entry price point of $750,000 to $950,000 and median unit value of $375,000 and an entry price point of $200,000 to $400,000.
The lowest dwelling transaction within Walkerville in the past nine months was that of 4 Lansdowne Terrace which achieved a sale price of $795,000. This is an original character dwelling disposed as three bedrooms and one bathroom on an allotment of 630 square metres. The property is located in proximity to a major arterial road and is situated a significant distance away from the hustle and bustle of Walkerville Terrace.
Norwood is situated approximately three kilometres east of the Adelaide CBD and provides a mixture of property types from substantial heritage homes and historical settlers cottages to recent multilevel infill developments such as The Bath Hotel and Nuova Apartments. The heart of Norwood is The Parade which is central to the suburb. The Parade is one of the premier retail, entertainment and dining precincts in suburban Adelaide. Of the inner ring champagne suburbs, Norwood provides one of the lowest entry points given the large variety of property types. Norwood has a median dwelling value of $790,000 and an entry price point of $500,000 to $700,000 and a median unit value of $540,000 and an entry price point of $200,000 to $400,000.
Purchased in the beer budget price bracket was 116 Sydenham Road, Norwood which achieved a sale price of $555,000. This property comprises an updated detached settlers cottage disposed as two bedrooms and one bathroom on 206 square metres of land. Off-street parking is awkwardly accessed via a shared laneway.
The suburb of Unley Park is situated approximately four kilometres south of the Adelaide CBD. This suburb is characterised by heritage homes on large allotments. Purchasers are drawn to Unley Park with its proximity to the shopping and dining precincts of King William and Unley Roads. Victoria Avenue and Northgate Terrace are considered the most desirable streets within Unley Park. Unley Park has a median dwelling value of $1.85 million and an entry price point of $1.2 million to $1.4 million.
Representing the market entry point in Unley Park is 11 Greer Street, Unley Park which achieved a sale price of $1.265 million. This property provides a well-presented character bungalow disposed as three bedrooms and two bathrooms. The dwelling is situated on a 668 square metre allotment and features a swimming pool.
Situated 12 kilometres west of the CBD is the beachside suburb of Henley Beach. This suburb is accessed directly from the CBD via Henley Beach Road. Henley Beach is spotted with coffee shops and eateries with Henley Square being the central meeting place. With a flat landscape providing limited opportunity for ocean or beach views, price levels drastically increase with proximity to the water’s edge. This provides purchasers the ability to buy close to the beach at a fraction of the price of the properties with beach frontage. The Esplanade and Seaview Road are considered to be the most desirable streets within Henley Beach. Henley Beach has a median dwelling value of $905,000 and an entry price point of $550,000 to $750,000 and a median unit value of $520,000 and an entry price point of $250,000 to $350,000.
At the bottom end of the market and below the typically accepted entry point is 69 Wright Street, Henley Beach which achieved a sale price of $520,000. This is a 1950s conventional style dwelling disposed as three bedrooms and one bathroom. A rear portion of the allotment has been subdivided leaving the property with 310 square metres of land. The property is conveniently located opposite a reserve and within 700 metres of the beach.
Investors looking in these suburbs are typically playing the long game as gross rental yields are well below the accepted six to seven per cent. Buying at the entry level price point in these suburbs would provide an investor the ability to value add or long-term hold to achieve the benefits of capital growth.
The suburbs of Medindie, Norwood, Unley Park and Henley Beach are only a fraction of the champagne locations within metropolitan Adelaide. There are plenty of properties out there for those South Australians who use beer as their currency. All they have to do is wait and watch and before they know it, they’ll be cracking the top off a cold one in celebration of a new buy.
Chat with a Smartline Adelaide Mortgage Broker today.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.