The Smartline Report – May Edition

The month in review: Adelaide

By Herron Todd White
May 2015

We consider Adelaide’s prestige properties have a price tag starting from around $2 million, with prestige apartments being slightly more affordable beginning at around the $1.2 million mark. These properties can be found in North Adelaide, Medindie and Gilberton in the inner north, Unley Park and Hyde Park in the inner south, St Peters and College Park in the inner east and Springfield in the start of the foothills to the south. Prestige properties are also located in most beachside suburbs to the west of Adelaide including Glenelg, Brighton, Somerton Park, Grange and Tennyson. Prestige apartments are generally the penthouse or sub penthouse of buildings located in Adelaide and North Adelaide, the Air apartments on the southern fringe of the city and various beach or waterfront apartments located mostly at Glenelg.

The expectation for any prestige property is for a high level of amenity with a high quality finish. Liveable area has to be significant and would generally exceed 250 square metres providing three plus bedrooms, two plus bathrooms, both formal and informal living areas and often include additional accommodation such as a home theatre, parents’ retreat, study or home office, butler’s pantry, the list goes on. Outside improvements include at a minimum a swimming pool and outdoor entertaining area and may also include a tennis court. Grounds are landscaped and well maintained and often exceed 1,000 square metres.

Currently it appears that the prestige property market is performing fairly solidly for properties under $3.75 million. However the demand for properties above that price level appears to be a little thin. Overall our prestige property market is usually defined as steady but it does experience some fluctuations from time to time. We expect that this market sector will continue to perform as is in the short to medium term.

The prestige property market in Adelaide does not reflect our general property market and is usually unaffected by the conditions such as interest rate increases and cost of living pressures that have a significant impact on the everyday residential property sector.

It is important to note that Adelaide’s prestige property market represents a very small proportion of our residential property market with the number of sales of properties over $2 million making up less than half of one percent of total sales. Traditionally many prestige properties located in Adelaide are held and passed down within families with some properties never being released to market. Sometimes cashed up returning expats looking in the $3 million to $5 million price bracket can drive the market along as these property prices can appear cheap in comparison to where they are returning from and they may be more likely to commit to buy at a higher price than local buyers.

However, as we have said in the past we don’t like to overtly generalise within this sector where it often comes down to the individual offering of the property itself and the specific motivations of the individuals involved.

The most expensive sale in Adelaide in the past 12 months was $5.125 million for a mansion on iconic Victoria Avenue at Unley Park, however, this property in Grove Street also at Unley Park which is yet to settle was reported on as under offer for $2.95 million and caught our eye. This 1920s gentleman’s bungalow offers 435 square metres of living space with 3-bedrooms, 3.5-bathrooms, formal lounge, formal dining, study, cellar and detached teenager’s retreat. Located on the nearly 2,000 square metre allotment is an outdoor living area under a Balinese hut with an outdoor kitchen, bathroom and sauna. It has a floodlit north south tennis court and a swimming pool which features a swim up bar – certainly not something you see every day.

Although not yet a sale it is hard not to mention the penthouse of the Atlantic Tower building at Glenelg, which is currently on the market with an asking price of $2.2 million to $2.4 million. It is safe to say that this is certainly a one of a kind offering. For a start, this is the only cylindrical high rise building in South Australia and from 1973 until 2001 was also the tallest residential building in the state. The penthouse is on the 14th floor above the revolving restaurant, which is currently closed. The top storey was fully rebuilt from the foundations back in 2003 to produce a luxury residential apartment of 457 square metres with 2-bedrooms, 2-bathrooms and a large open plan living area divided into various zones around the central pillar. The apartment has a 360 degree balcony and also 360 degree panoramic views. The photos are amazing but the actual views are breathtaking.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

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