The month in review: Adelaide
By Herron Todd White
I think we will see continued growth at a slow and steady rate through the next 12 months. We have come through some quite negative times from a business point of view and while this has had some impact (e.g. closure of Holden) it has hurt sectors of the market rather than the market as a whole.
Prospect is situated 4 kilometres to the north of the CBD. We should continue to see activity in the $1 million plus price range, however there are still properties available in the $500,000 to $800,000 price range which provide entry level purchases for buyers seeking character dwellings and larger allotments.
Flinders Park is situated 5 kilometres west of the CBD and offers older housing on larger allotments. Properties under $600,000 in this area deserve attention given the continued popularity of this suburb.
Glenalta is situated in the Adelaide Hills to the south of the CBD. This area still provides entry level options for first home buyers seeking detached housing.
Ongoing changes to Prospect Road and the recent completion of a cinema continue to provide local residents with a convenient and vibrant shopping and café hub. Demand within this suburb should continue to remain solid.
Continued in-fill development is fuelling good demand for older, detached housing. The suburb is situated between the city and the coast as well as being adjacent to Linear Park. Completion of the Torrens-to-Torrens Roadway by the end of the year will also improve access within the inner western suburbs.
This suburb offers a hills lifestyle, convenient shopping and community facilities all within 10 kilometres of the CBD.
Royal Park is undergoing increasing in-fill development and provides lower cost entry into the market than the neighbouring suburbs of Seaton and West Lakes. Hectorville in the north-east still provides affordable units allowing first home buyers entry into the suburb.
There have been a couple of CBD apartment buildings which have been finished during 2017 as well as a couple which are nearing completion. While the State Government is encouraging more people to live in the CBD, we believe that it might take some time to absorb this supply. It often takes a year or so for a resale market to become established to determine whether or not the sale prices from developers are sustainable.
Similarly, changes in zoning in areas such as Campbelltown, Plympton and Hectorville, which allow higher density development, have increased prices over the past couple of years for potential development sites. In these areas there have only been a small number of dwellings completed, however we are aware of a number of approvals which have been obtained. While there is currently demand for these newer properties, we are unsure of the markets depth and whether this future supply will be absorbed. Therefore this could result in an oversupply. We will need to monitor this over the short term.
The fallout from the closure of the Holden Plant is likely to play out through 2018. While the government is attempting to encourage employment in the north, this may take some time and people may need to move away to find work. This may influence demand for properties.
Adelaide has been mentioned in the media in the latter stage of 2017 as an ‘affordable’ capital city option when compared to the likes of Sydney and Melbourne. This type of media discussion may result in some increased demand within Adelaide, particularly to the city fringe.
The end of 2017 saw the completion of the O-Bahn Busway which has been touted as a solution to traffic congestion adjacent the city as well as improving travel times from the north-eastern suburbs. 2018 will see the completion of the Torrens-to-Torrens roadway project and further enhance access for the North-South corridor. This may also influence demand for properties. We will be continuing to monitor the market in light of these projects.
O-Bahn Busway tunnel completion:
Work on Torrens to Torrens project continues to progress:
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