Adelaide December 2017

The month in review: Adelaide

By Herron Todd White
December 2017

Based on Real Estate Institute of South Australia data, the change in median price between September 2016 and September 2017 for the predictions for 2017 are as follows:

• West Hindmarsh: 11.03%
  • Edwardstown: 3.14%
  • Seaford: 4.96%
  • There were no sales in the September 2017 quarter in Welland or Devon Park.
  • Christies Beach: 0.72%

This may indicate that the market in this area has slowed somewhat after previous periods of higher growth.

Renown Park data indicated that the median price had decreased by 5.34%. This is based on only four sales which is a very small sample size.

The Adelaide market has continued to remain stable on the whole with performance differing greatly depending on location.

The market has moved in a way that was expected. Lower supply in inner city areas has resulted in increased demand. Areas which offer a larger number of properties on the market have remained stable.

Demand for character style dwellings in proximity to the CBD has continued to remain high due to low stock levels.

Detached housing remains the dominant property type in Adelaide although there has been increased construction of townhouses and apartments in locations such as Prospect and Campbelltown. Although there are increasingly fewer properties below $500,000, particularly close to the CBD, Adelaide remains the most affordable mainland capital city on a median house price basis.

Top performers over the September 2016 to September 2017 period were Toorak Gardens (50.37% change), Dernancourt (29.82% change) and Moana (29.08% change) (source: reisa.com. au). Toorak Gardens is a sought after suburb two kilometres east of the Adelaide CBD. It typically incorporates high quality character style dwellings in an appealing location with close proximity to local services and facilities. Dernancourt is further from the CBD (approximately 12 kilometres) but still offers a range of housing at varying prices particularly for first home buyers seeking to enter the market. Interestingly, Moana is adjacent the suburb of Seaford which we noted as a prediction suburb for 2017. It is an increasingly popular beachside suburb situated approximately 36 kilometres from the CBD. It is well serviced by the Seaford railway line.

Activity from first home buyers remains fairly stable with owner occupiers and investors still active in the market.

There has not been a shift in the dominant buying demographic in the Adelaide market.

The Torrens to Torrens Roadway and the Darlington upgrades are still underway. Whilst this is causing short term issues for local residents, we envisage that these projects will provide improved access for the north-south corridor and improved access to the CBD for southern suburbs residents. The O-Bahn tunnel project in the eastern parklands is nearing completion. This will help alleviate traffic issues from the north-eastern suburbs by taking O-Bahn buses off the road between the O-Bahn track and Grenfell Street. These projects are also continuing to provide employment opportunities for the state and improved facilities for the public. Interest rates have remained on hold with the state’s outlook remaining stable in the short term.

O-Bahn Project Update October 2017

Views looking east to the southern side of the tunnel and view inside tunnel.

Sales of note for this year:

Fitzroy House located in the city fringe suburb of Fitzroy.

Sold June 2017 $5.55 million

The property comprises a circa 1882 bluestone mansion with original timber-panelled ballroom. The property overlooks the North Adelaide Parklands and includes a six car garage, coach house, floodlit north/south tennis court, swimming pool and substantial cellar on a 2,508 square metre allotment. The property was built for South Australian Federalist Sir Josiah Symon and incorporates approximately 800 square metres of living over two levels. (source: realestate.com.au)

Woodley House in the eastern suburb of Glen Osmond

Sold April 2017 for $3.005 million

The property comprises a circa 1845 bluestone mansion on a 5,891 square metre allotment. The property includes up to six bedrooms, north facing conservatory and tennis court. The property also enjoys views of the city (source: realestate.com.au).

Prospect Road, Prospect

Sold April 2017 for $3.2 million

The property comprises a large land holding of 1,765 square metres with a large character style dwelling, tennis court and in-ground swimming pool. The property is located approximately five kilometres north of the CBD and has been rezoned Urban Corridor in recent years. This zoning allows for a broad range of potential uses including retail, office or high density residential. Although improved with high quality dwelling and ancillary improvements, the property was sold as a development site which offers short to medium term leasing opportunities with potential for future redevelopment (source: realcommercial.com.au).