The month in review: Adelaide
By Herron Todd White
Fringe suburbs are those where buyers have usually traded off a central location for price. Examples of fringe suburbs for detached housing in Adelaide are Woodcroft and Happy Valley to the south, Gulfview Heights to the north and Athelstone to the northeast.
Woodcroft is situated approximately 20 kilometres south of the Adelaide CBD adjacent to the suburbs of Morphett Vale and Reynella East. Accessibility to the suburb has been enhanced since the duplication of the Southern Expressway. There are courtyard style dwellings (circa 1990s) and older style dwellings available in the low $300,000 range which provide a good entry level point for first home buyers. Newer housing and detached housing on larger allotments typically sell in the $450,000 to $600,000 range.
Weekly rents typically range between $300 and $480 depending on overall property features with an average yield of 4.8% (source: realestate.com.au). 9 Tuscany Way, Woodcroft is a 3-bedroom, 1-bathroom courtyard style dwelling on a 352 square metre allotment which recently sold for $307,500. This property is currently listed for rent at a weekly rental of $320 which reflects an initial yield of 5.4%. 8 Topaz Close, Woodcroft is a 3-bedroom, 2-bathroom dwelling on a 556 square metre allotment which recently sold for $360,000. This property is currently listed at $390 per week which reflects an initial yield of 5.6%.
Happy Valley is situated adjacent to the suburbs of Aberfoyle Park and Reynella East and is approximately 20 kilometres from the Adelaide CBD. There are 1970s and 1980s style detached dwellings available in the low to mid $300,000 range which are entry level properties for first home buyers. Newer housing and renovated housing on larger allotments generally ranges between $450,000 and $650,000.
Weekly rents typically range between $300 and $480 depending on overall property features with an average yield of 4.9% (source: realestate.com.au). There are currently limited dwellings recently sold listed for rent which indicates reasonable demand from owner-occupiers.
Gulfview Heights is 20 kilometres north of the Adelaide CBD and is adjacent to Salisbury East, Wynn Vale and Para Hills. Development comprises 1970s and 1980s dwellings with a section of larger, more modern housing constructed in the late 1990s and early 2000s. Older style housing within the high $200,000 to low $400,000 range is attractive to first home buyers. Newer and more modern housing generally sells in excess of $500,000.
Weekly rents typically range between $300 and $500 depending on overall property features with an average yield of 4.9% (source: realestate.com. au). There are currently limited dwellings in Gulfview Heights which have recently sold that are listed for rent. This indicates reasonable demand from owneroccupiers.
Athelstone is an established north-eastern suburb situated 12 kilometres from the Adelaide CBD. Development comprises predominantly 1970s and 1980s dwellings with sections of increasing in-fill development. Older style dwellings typically sell within a range of $400,000 to $500,000 with newer dwellings selling in excess of $600,000.
Weekly rents typically range between $300 and $550 depending on overall property features with an average yield of 4.0% (source: realestate.com. au). 4 Kurrajong Avenue is a 3-bedroom, 2-bathroom 1970s Spanish style dwelling on a 715 square metre allotment which recently sold for $520,000. This property is currently listed for rent at a weekly rental of $380 which reflects an initial yield of 3.8%.
The following sales illustrate the difference in price for similar dwellings in Woodcroft compared with the suburb of Unley, a highly regarded area within three kilometres of the Adelaide CBD.
11 Mildara Close, Woodcroft, sold 4 March 2016 for $337,500
This property comprises a circa 1993 3-bedroom, 1-bathroom dwelling situated on a 315 square metre allotment with an equivalent area of 138 square metres. The property includes an updated kitchen, single garage (under the main roof) and a rear verandah (source: RP Data).
10 Boothby Court, Unley, sold 19 January 2016 for $615,000
This property comprises a circa 1994 3-bedroom, 1-bathroom semi-detached dwelling situated on a 300 square metre allotment with an equivalent area of 150 square metres. The property includes a single garage (under the main roof) and a rear verandah (source: RP Data).
A potential purchaser in Woodcroft would be 17 kilometres further from the CBD which is the tradeoff for the large reduction in price ($277,500 or 45% difference) compared to the Unley property.
Quality housing in suburbs within ten kilometres of the CBD continues to experience good demand. Given this, there are more residents moving further from the CBD to seek housing within an affordable price bracket. There is increasing in-fill development within Athelstone and Happy Valley as well as new development in Woodcroft which is improving the overall appeal of these suburbs. Although further from the CBD, these locations are well serviced with local shopping facilities in good proximity.
These suburbs provide good opportunities for first home buyers seeking detached housing within the $300,000 to $400,000 price bracket. These opportunities are few and far between within close proximity to the CBD with the exception of smaller unit style accommodation. These areas have fairly consistent levels of demand from buyers and tenants alike. The outer northern suburbs (Playford Council area) comprising areas close to Elizabeth and the Holden Manufacturing plant continue to experience negative sentiment with the effects of the imminent closure of the plant in 2017 yet to transpire.