The month in review: Adelaide
By Herron Todd White
Adelaide remains the most affordable mainland capital city in Australia with a median price as at 30 April 2016 of $410,400 and a myriad of properties available around $500,000. There is an increasing scarcity of detached dwellings in this price range within close proximity of the CBD. The market for older units and townhouses regardless of location remains relatively flat. We have focused on detached housing for investors.
To the north-west of Adelaide, Croydon Park is adjacent to the popular suburbs of Croydon and West Croydon and the Queen Street café precinct. It is situated approximately eight kilometres from the Adelaide CBD and is well serviced by the Centro Arndale Shopping Centre. There are railway stations situated in West Croydon and Dudley Park providing access to the CBD. There are older style dwellings on larger allotments generally available in the $350,000 to $450,000 range while newer housing typically sells in the $450,000 to $550,000 range. The current median price for detached housing is $409,000 (source: realestate.com.au). Weekly rents typically range between $320 and $460 depending on overall property features with an average yield of 4.4% (detached housing) (source: realestate. com.au) This area is increasing in popularity due to its reasonable proximity to the CBD, improved accessibility via the Torrens to Torrens roadway (under construction) and is a more affordable option than historically more appealing areas such as West Croydon and Woodville.
Further west, the suburb of Largs North is situated 17 kilometres north-west of the CBD. It is adjacent to the popular suburb of Largs Bay. It provides a more affordable option than Semaphore or Largs Bay. The State Government announced in April 2016 that 12 new submarines will be constructed by a French company on the ASC site in neighbouring Osborne. This is expected to generate approximately 1,700 local jobs which is a positive for local residents (source: adelaidenow.com.au). Largs North features a mix of housing from the 1940s to 1970s with increasing in-fill development. The area is situated within close proximity of local beaches and the Port Adelaide area. It is a more affordable beachside suburb compared to suburbs such as Glenelg and Brighton which are situated further south. The current median price for detached housing is $416,000 with an average yield of 4.4% (source: realestate.com.au).
Modbury is situated approximately 14 kilometres north-east of the Adelaide CBD. The suburb comprises predominantly 1960s and 1970s style dwellings. The suburb is well serviced by local shops and has good access to the CBD via the O-Bahn Busway. Recent zoning changes in sections of the suburb are encouraging higher density development. This provides possible future growth potential for investors. Current median price for detached housing is $365,000 with an average yield of 4.6% (source: realestate.com.au).
St Marys to the south of the city provides older housing on larger allotments. It is situated within ten kilometres of the CBD, is well serviced by local shops and has access to the southern suburbs and beaches via the Southern Expressway. Neighbouring suburbs such as Daw Park have increased in popularity and price, with St Marys now offering a more affordable option for purchasers. Current median price for detached housing is $430,000 with an average yield of 4.4% (source: realestate.com.au).
These areas all provide varying options for potential purchasers. Historically, those suburbs located closest to the city such as Norwood and Prospect have benefited most from capital growth along with the beachside suburbs. Detached properties on larger allotments offered for less than $500,000 within ten kilometres of the CBD are increasing in scarcity and are recommended as serious options for potential purchasers.
The West Lakes re-development of the AAMI Stadium land as noted in July 2015 is now underway with infrastructure in the process of being laid. Demand has been good for off-the plan dwellings and new vacant allotments. While we will continue to monitor the market in coming months to track the impact this has on the western property market, it is likely to be positive.