There is an ongoing theme in the Adelaide market. In the $500,000 to $800,000 price range, there is activity in city fringe suburbs as always. First home buyers who can purchase a quality property under $500,000 within proximity of the CBD are generally in a happy situation.
The buyer demographic is generally home buyers and those upgrading. Older first home buyers are also active in this market segment. There is increased interest in properties under $500,000 in suburbs close to the CBD. Closer proximity to the CBD in this price bracket generally results in greater interest.
In Adelaide, a purchase price of between $500,000 and $800,000 provides buyers with a myriad of options. Within five kilometres of the CBD, this property will typically be detached and may be renovated. Outside of this radius, buyers can purchase a detached dwelling on a good sized allotment which has likely been renovated.
This price range is generally affordable for purchasers with a dual income. It’s becoming increasingly difficult for purchasers with a single income to enter the market at this price point without a substantial deposit to cover stamp duty in particular.
Properties in the outer northern suburbs between $200,000 and $400,000 are probably slowest at the moment with the predominant buyer in this area being investors with larger deposits who are more risk averse in light of economic uncertainty within the region.
There is decreased first home buyer activity as well as decreased investor interest given economic uncertainty with the pending closure of the Holden manufacturing plant at Elizabeth.
The level of market activity at different price points does depend on location and generally proximity to the city and facilities. Affordable suburbs adjacent to popular and more expensive areas are also experiencing increasing market activity as buyers seek affordability.
Clarence Gardens, situated approximately seven kilometres south of Adelaide’s CBD. It has become an increasingly popular suburb and a more affordable alternative compared to suburbs such as Clarence Park, Westbourne Park and Colonel Light Gardens. The property sold in November 2014 for $500,000. It is a basic conventional style dwelling situated on a corner allotment. It resold in July 2016 in the same condition and without renovation for $612,500. Purchasers seeking a property in this area over the past couple of years have seen the budget for potential dwellings increase. Decreasing supply of properties available in this price range is driving demand.
On the other end of the spectrum, northern suburbs such as Andrews Farm have experienced somewhat stagnant market conditions in the past few years. This is an outer northern suburb situated approximately 32 kilometres from the Adelaide CBD. Increasing development of new housing in this area is causing demand for older dwellings to drop.
Sales evidence indicates that most of the dwellings sold in the past 12 months in Mount Gambier were in the $200,000 to $250,000 price range. This can be seen in the graph below. The $200,000 to $250,000 price range is affordable for owner occupiers entering the market and for investors looking for a property that provides a stable rental return. $251,000 to $300,000 and $301,000 to $400,000 are also price points that have been favoured among buyers within the past 12 months.
A dwelling within the price range of $200,000 to $250,000 is generally of average to good quality, including 3- to 4-bedrooms, 1- or 2-bathrooms, car accommodation and an undercover outdoor area. The dwellings are generally of brick or stone construction. Living areas range from about 150 to 200 square metres and the properties are located on roughly 700 to 900 square metre allotments. These houses vary in age from the stone dwellings constructed circa 1950s to brick dwellings constructed circa 1980s to 2000s.
2 Marlow Court, Mount Gambier – $230,000
A circa 1998 brick dwelling with 3-bedrooms, 2-bathrooms and a double garage under the main roof. Ancillary improvements include a pergola. Living area is 160 square metres and the dwelling is situated on a 756 square metre allotment. For this price you can also get a modern residential unit including 2- to 3-bedrooms, 1-bathroom and a single garage under the main roof, such as the one below. These units are generally located on roughly 200 to 500 square metres allotments.
7/14 Bailey Street, Mount Gambier – $250,000
A 2013 brick unit with 3-bedrooms, 1-bathroom and a single garage under the main roof. Living area is 143 square metres and the unit is situated on a 409 square metre allotment.
Over the past 12 months there have been few dwellings purchased for under $150,000 or over $500,000. Dwellings under $150,000 are generally in less sought after locations and have limited market activity. Dwellings over $500,000 are at the top end of the market and have a reduced market segment. High income earners generally purchase these properties. These properties are often tightly held and rarely hit the market, which is reflected in the low number of sales occurring each year.
Properties reaching over $500,000 are generally modern homes in a newer residential division or character homes of high quality within close proximity of the town centre, such as the sales below.
10 Dawn Court, Mount Gambier – $560,000
A circa 2011 stone dwelling with 4-bedrooms, 2-bathrooms and a double garage under the main roof. Ancillary improvements include a large alfresco area and 2-car detached garage. Living area is 335 square metres and the dwelling is situated on a 1,085 square metre allotment. Situated in a modern residential division.
24 Power Street, Mount Gambier – $567,000
A circa 1920 stone character dwelling with 3-bedrooms, 2-bathrooms and double garage. Ancillary improvements include a pergola. The property has been extensively renovated. Living area is 246 square metres and the dwelling is located on a 1,366 square metre allotment within close proximity of the town centre.
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.