Adelaide May 2018

The month in review: Adelaide

By Herron Todd White
May 2018

Adelaide’s prestige market doesn’t meet the lofty price point of many of the other major Australian capital cities. This isn’t to say that Adelaide doesn’t have homes of grand proportions with all the bells and whistles. This market continues to be driven by a mixture of local corporate South Australians, overseas purchasers and those returning from interstate to raise their families in the 20 minute city.

The prestige dwelling market in Adelaide falls within the $2 million to $4 million price range, whilst ultraprestige properties are considered to be $4 million, and above.

The Adelaide market typically sees steady transactions annually within the lower portion of the prestige market range. Transactions typically thin out above $3 million.

The Adelaide market typically has a ceiling within the $5 million range with only a number of transactions achieving prices at this level over the past 24 months. Properties within the prestige and ultraprestige price segments are typically found within the inner suburban blue ribbon suburbs, the western beachside suburbs and the Adelaide Hills.

Agents are typically selling properties at this price point by private treaty. Selling periods for these types of properties vary with location and price point. Prestige properties within the inner blue ribbon suburbs are typically selling within six month marketing periods. The prestige market to the west of the city and Adelaide Hills can fall into the lifestyle/sea change market segment. This segment can require extended selling periods to achieve sales.

Prestige properties are typified by a number of property factors with location being one of the most important.

These properties generally have significant site improvements of swimming pools, tennis courts, outdoor kitchens and substantial external entertaining areas. Within the inner suburban areas, renovated character dwellings on large allotments and high quality infill developments typify this market segment. Properties to the west of the city rely on similar dwelling characteristics and proximity to the beach.

During 2017, the top ten dwelling transactions ranged between $3.302 million and $5.55 million. Each of these sales comprised substantial character dwellings situated on large allotments. Of these ten transactions only two achieved prices within the ultra-prestige price point.

At the top end of this range was 20 Fitzroy Terrace, Fitzroy located four kilometres north of the Adelaide CBD. This dwelling provided 6 bedrooms and 4-bathrooms across two levels of living comprising a total of 810 square metres under the main roof. Site improvements consisted of a tennis court, swimming pool, 6-car garage and coach house.

Adelaide property 1

Located three kilometres to the south of the CBD is 23A Commercial Road, Hyde Park. Hyde Park is characterised by turn of the century homes and tree lined streets. This is a circa 2009 high quality 4-bedroom, 3-bathroom dwelling with a double under croft garage and swimming pool. The dwelling is situated on an allotment of 724 square metres and chieved a sale price of $3 million in February.

Adelaide property 2

Four kilometres east of the CBD is the suburb of Toorak Gardens. This is a blue ribbon suburb with a current median house price of $1.408 million. Prescott Terrace is considered to be a premier thoroughfare within this suburb. The recent sale of 6 Prescott Terrace, Toorak Gardens for $3.125 million000 is a reflection of this premier location. The property is a renovated circa 1900s character dwelling disposed as 5-bedrooms and 2-bathrooms. This property achieved a price of above $3 million without the significant site improvements of a swimming pool or tennis court.

Adelaide property 3

One of highest prices to be achieved in 2018 is that of 14 Edwin Terrace, Gilberton which settled in February at a price of $3.8 million. This is a character dwelling of grand proportions, with the original character frontage opening up to a two level rear extension which overlooks the tennis court and swimming pool. The dwelling is disposed as 5-bedrooms and 3-bathrooms with a total equivalent building area of 550 square metres. The improvements are situated on an allotment of 1,700 square metres.

Adelaide property 4

Prestige and ultra-prestige in Adelaide’s western suburbs is typically reserved for properties with proximity to the beach. Recently settled in January for $2.61 million is 8 Seaview Road, West Beach. This property has unrestricted ocean views with easy access to the beach. The dwelling was constructed in 2004 and is disposed as 5 bedrooms and 2-bathrooms and features a swimming pool. A negating factor of the beach side locations is the Adelaide Airport which is located west of the city. Properties located directly west of the airport can be affected by overhead flight paths.

Adelaide property 5

According to CoreLogic, the highest unit or apartment sale in 2017 was that of 22/30 Colley Terrace, Glenelg at $1.925 million. The apartment market typically hits a ceiling in the $2 million range. In the past twelve months there have been a number of transactions within the $1.5 million to $2 million range. To achieve prices at this level apartments require a mixture of proximity to community services and facilities, panoramic views, substantial living spaces, off street secure car parking, balconies or terraces and high quality common improvements. Agents have indicated that the development of Adelaide Oval and the Riverbank precinct has led to an increase in enquiry within the North Adelaide prestige apartment market. Both 508/61-69 Brougham Place, North Adelaide and 2/125 Mackinnon Parade, North Adelaide have recently settled for $1.75 million each. The property at 508/61-69 Brougham Place, North Adelaide is a fifth floor apartment disposed as 3-bedrooms and 2-bathrooms with sweeping views of the Adelaide CBD, Riverbank precinct and Adelaide Oval, while 2/125 Mackinnon Parade, North Adelaide is a first floor apartment, similarly disposed, with limited views and located opposite the Adelaide University playing fields and River Torrens.

Adelaide property 6

The market segment for prestige properties within the Adelaide Hills is thinner than the inner suburban ring with a lower number of annual transactions above $2 million. The Adelaide Hills as a region takes in a broad number of townships which have differing levels of local services and facilities. The townships within the south-east portion of the Adelaide Hills, which have easy access to the CBD via the South Eastern Freeway, typically see the largest proportion of properties achieving prices in the prestige and ultra-prestige ranges. To achieve a price at these levels, properties require significant dwelling accommodation, acreage and additional site improvements which lend themselves to the location. These include dams, watercourses, stables, round yards and shedding. The recent sale of 26 Pikes Street, Oakbank for $3.9 million is a representation of a property which includes all of these attributes. Oakbank is located 32 kilometres south-east of the Adelaide CBD and is best known for the Easter Oakbank Racing Carnival. The property comprises a two level 1880s character dwelling disposed as 5-bedrooms and 2-bathrooms. Site improvements consist of a swimming pool, 8-car garage, stables, shedding and extensive landscaping. The improvements are situated on an allotment of approximately three hectares.

The prestige market continues to show signs of buoyancy. It’s expected that we will see a steady number of transactions at the lower end of the prestige market price point. Increased demand at this level has the ability to pressure the prestige and ultra-prestige markets to higher levels during 2018. This market will continue to be monitored.

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