By Herron Todd White
What are your motivations for entering the market? The answer to this question should provide the backbone to the type of property attributes a purchaser is seeking. Throughout a lifetime, motivations change; property attributes and price points sought by first home buyers are vastly different to those sought by downsizers. We will be dissecting the property attribute conundrum with a focus on the middle and inner rings.
First home buyers form the market entry point. These purchasers consist of young singles, couples and families trying to break away from mum and dad or the rental market. These purchasers are seeking out a stepping stone property in a comfortable location. This typically consists of suburbs which are in proximity to the family home providing a price point consistent with their purchasing capacity. These purchasers look for low maintenance properties which are lock up and leave with proximity to local transport and vibrant community hubs. These properties consist of modern townhouses, apartments, courtyard homes and more traditional strata units typically comprising up to three bedrooms and two bathrooms. Popular with this market have been apartments and units within Kent Town, Norwood and Bowden and townhouses which can be found throughout the middle ring. The entry price point for properties with these attributes can range from the mid $200,000s for traditional home units to the high $500,000s for modern townhouses. Fitting this profile is the sale of G02/46 Sixth Street, Bowden, a circa 2015 ground-floor two-bedroom, one-bathroom apartment with a single car undercroft space.
There’s also 7 Hectorville Road, Hectorville a circa 2018 three-bedroom, two-bathroom townhouse with a single garage and 2/27 Trevelyan Street, Wayville a circa 1960s two-bedroom, one-bathroom unit with a single off-street car space. These properties achieved sale prices of $420,000, $531,000 and $281,000 respectively.
You are now married. The two-year-old wants to roll around in some grass and you have another one on the way. It’s time to find something a bit more family-friendly.
Young families seek out more traditional homes on medium to larger lots. These purchasers will have to forgo some creature comforts as many of the entry-level homes provide only basic accommodation. These properties consist of early, middle and late century homes typically comprising up to three bedrooms and one bathroom with basic site improvements. The entry price point for properties with these attributes begins at $400,000 for mid and late century homes in the middle ring and $600,000 for early century homes in the inner ring.
Fitting this profile are the sales of 57 Rita Avenue, Rostrevor, a circa 1960s single level brick dwelling comprising three bedrooms and one bathroom and 4 Burt Avenue, Hilton, a circa 1920s bungalow disposed as three bedrooms and one bathroom. Both these properties are situated on allotments of approximately 600 square metres and achieved sale prices of $430,000 and $600,000 respectively.
The family has grown. The side of the house is being used as a squash court and the single toilet is occupied 24/7… it’s time to upgrade!
Upgraders are seeking out properties which will see them through the next quarter of a century. Popular suburbs for upgrades are those with a high density of parks and reserves and favourable school zoning. These purchasers typically require four bedrooms, two bathrooms, two living areas and outdoor entertaining. A pool, a court or room to put one of each would be a bonus.
Within the inner-east and inner-south, suburbs within the Marryatville High School and Glenunga International High School zones have been popular with upgraders. The entry price point for properties with these attributes begins in the $900,000s.
Fitting this profile are the sales of 19A Wattle Street, Fullarton, a circa 1930s bungalow providing four bedrooms and two bathrooms on a 1,000 square metre allotment and 45 Stuart Road, Dulwich, a return veranda bungalow providing four bedrooms and two bathrooms with a swimming pool on a 717 square metre allotment. These properties achieved sale prices of $935,000 and $1.185 million respectively.
Close your eyes. It’s now 25 years later. The kids have moved out. You have three additional glorified storerooms and you can’t get up the stairs with the bad knee.
It’s time to downsize.
These purchasers are typically cashed up and seeking low maintenance properties with some flair. They need a small enough property that maintenance isn’t an issue and large enough that they can entertain and have the grandkids over to stay. Property attributes typically sought include single-level construction, double garage, courtyard, outdoor entertaining and up to three bedrooms and two bathrooms. The entry price point for properties with these attributes begins at $500,000 within the middle ring and $800,000 within the inner ring. Fitting this profile are the sales of 30 Malwa Street, Glandore in the middle ring and 1 Tyne Street, Gilberton in the inner ring. Both properties comprise three bedrooms, two bathrooms and double garages and achieved prices of $632,500 and $1.425 million respectively.
The prestige market is where the differentiation between wants and needs becomes murky. With an entry point of $3 million, purchasers are seeking out properties of the highest standard. Location, size and view are typically the most sought after property attributes for these purchasers. In addition, purchasers seek modern builds and renovations, passenger lifts in multi-level dwellings, swimming pools, tennis courts, pavilions, grottos… you name it, it’s available.
Fitting this profile are the sales of 95 Jeffcott Street, North Adelaide ($3.3 million), a two-level heritage dwelling comprising five bedrooms, four bathrooms, four-car garage and swimming pool and 81 Seaview Road, Tennyson ($5.2 million), a circa 2010 architecturally designed three-level dwelling comprising seven bedrooms, eight bathrooms, an indoor swimming pool and four-car garage. Both properties are well located with 95 Jeffcott Street being a cover drive from Adelaide Oval and 81 Seaview Road being close enough to the beach you could dive into the water from the third-floor balcony.
It can be a fickle exercise determining wants and needs when entering the property market. Before diving in headfirst, ask yourself what your motivations are. Once you have the answer to that question, the property attributes you want and need will become clearer.
Speak with an 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.