CoreLogic National housing Update March 2018
March Market Outlook
Getting a mortgage for an off-the-plan property
The latest in landscaping
Adelaide March 2018
Brisbane March 2018
Canberra March 2018
Darwin March 2018
Gold Coast March 2018
Melbourne March 2018
Newcastle March 2018
Perth March 2018
Regional NSW March 2018
Regional NT March 2018
Regional QLD March 2018
Regional VIC March 2018
South West WA March 2018
Sydney March 2018
Tasmania March 2018
Wollongong March 2018
Should you flip your property?
CoreLogic NSW housing Update March 2018
CoreLogic QLD housing Update March 2018
CoreLogic SA housing Update March 2018
CoreLogic VIC housing Update March 2018
CoreLogic WA housing Update March 2018
5 hacks for breaking into the property market
Reduce your energy costs
Should you flip your property?
Adelaide March 2018
The month in review: Adelaide
By Herron Todd White
Daw Park is situated approximately seven kilometres south of the Adelaide CBD. This area has seen increasing activity from potential purchasers seeking a more affordable alternative to suburbs such as Clarence Park and neighbouring Colonel Light Gardens. Values in this area have increased over the past few years with buyers seeking dwellings (both character and conventional style) on larger allotments. Whilst this area does not offer the same character appeal as Colonel Light Gardens, it incorporates dwellings of a variety of eras in a well serviced location. Detached unrenovated dwellings typically range between $450,000 and $600,000 whilst renovated character dwellings typically command $700,000 and upwards. Home units also provide another option for buyers entering the market with units typically selling within a range of $250,000 to $400,000.
A recent sale of note in this area achieved a record price for Daw Park. 60 Aver Avenue sold in October 2017 for $1.098 million and comprises an extended and extensively renovated Tudor style dwelling.
Athelstone is a north-eastern suburb situated approximately 13 kilometres from the CBD. It offers a mix of properties but predominantly detached housing built between the 1960s and 1980s with increasing in-fill development underway. There are some dress circle areas situated to the east of the suburb in a foothills location offering district and city views. Dwellings in these areas typically command higher values than dwellings in other sections of the suburb. This area provides a good entry level for first home buyers with older courtyard style dwellings selling in the high $300,000 range and detached housing on larger blocks selling for upwards of $400,000.
11 Kildare Avenue, Athelstone recently sold for $430,000. This property incorporates 3-bedrooms and 1-bathroom and indicates entry price level for first home buyers seeking a detached dwelling on a larger allotment.
Blair Athol is situated approximately ten kilometres north of the CBD. This area typically comprises detached older style dwellings on larger allotments. This area has been undergoing increased in-fill development with recent zoning changes increasing appeal for potential purchasers. The recent sale of 3 Hazel Street for $565,000 indicates the new price levels that developers are prepared to pay to enter this market and take advantage of the new zoning changes (subject to council consent).
The Real Estate Institute of South Australia recently announced that Adelaide has a brand new record median price of $465,000. These areas provide affordable alternatives to surrounding areas and importantly, opportunities below the current median price.
These areas predominantly comprise detached housing with less home units and attached dwellings.
According to realestate.com.au, annual growth for these areas is:
- Daw Park: 5.5%
- Athelstone: 2.1%
- Blair Athol: 6.6%
Rental yields are 3.6%, 4% and 4.4% respectively. These areas are typically attractive to owner occupiers and investors.
Prospects for middle ring suburbs in 2018 remain positive as these areas generally provide an alternative to more expensive or more highly sought after locations.
Rental demand remains steady. A recent realestate. com.au article noted that Edwardstown (adjoining Daw Park) is the second most in demand suburb for rentals based on their research. These areas are generally attractive to young families as properties typically comprise detached dwellings on larger allotments.
There are opportunities for buying within middle ring suburbs in 2018. Suburbs such as Reynella, Old Reynella and Reynella East are situated approximately 20 kilometres from the CBD. They will have improved access to the Adelaide CBD upon completion of the Darlington upgrade project currently underway. Reynella was recently the fifth most in demand suburb for rentals (source: realestate.com.au).
The challenge in this sector is typically public transport as whilst middle ring suburbs can provide a good entry point for purchasers, many of these suburbs may not have the same access to public transport. Whilst Adelaide’s bus system covers a large geographical area, service levels vary across the city and suburbs. Residents within the middle ring tend to rely on transportation by car.
The completion of the Darlington upgrade at the end of the South Expressway will enhance access to the city for properties in the southern suburbs. This is likely to boost middle ring addresses.
Prospects in this market sector are likely to be positive if market conditions remain stable and as long as these areas remain at affordable price levels.
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.