SA Adelaide rising suburbs article by Terry Ryder

Discussion in 'Where to Buy' started by D.T., 28th Sep, 2021.

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  1. D.T.

    D.T. Specialist Property Manager Business Member

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  2. PeterCr

    PeterCr Well-Known Member

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    Playford Council and Salisbury made it to the list ?
     
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  3. WattleIdo

    WattleIdo midas touch

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    I strongly suspect that Adelaide is going to start leading the pack any time now.
     
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  4. Cia

    Cia Well-Known Member

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    Unfortunately as I'm buying here, that's the truth. Prices are going upwards very fast. I looked at this house at 26 Hill St Crafers. It was listed for $640 to $660. It sold for $1,060,000. It didn't even have cooking facilities, and it was really a 1 bedder. Alot of useless land there though.

    https://www.realestate.com.au/sold/property-house-sa-crafers+west-137217682

    Alot of places are going up fast, or if good priced selling within 2 inspection days.
     
  5. boganfromlogan

    boganfromlogan Well-Known Member

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    Go Adelaide!!

    Does this mean it's time to sell Adelaide IP?
     
  6. Jimmyay

    Jimmyay Well-Known Member

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    Adelaide has been a sleeping market for 10 years until late 2020. Prices in many suburbs didn't see increases or only just made on average 1-2% p/a growth through that period. This is the jump to catch up, it has happened before in Adelaide.

    I follow Adelaide reasonably closely as have property and family there. I reckon there has been around a 20% growth in just over the past year in many suburbs, and of course some favoured locations have done even better than that. Land prices near the water in the suburbs nearer the city particularly have increased a lot.

    I think the most of the increases we have seen up to today are baked in and are not that frothy due to the market being so slow for so long - it had got "too cheap".

    inevitably with all the excitement & interstate buyers taking a Sydney / Melbourne mentality to buying in Adelaide, some of them will be ignoring fundamentals and they will be paying too much for pretty average properties.

    I have seen this personally having been to open houses a few months ago and seeing that frenzied/ desperate look on peoples faces which you get in hot markets, as they troop around with 30 other groups at the same time, people doing FaceTime inspections via an Ipad, phones out filming etc. In pretty average suburbs. Hard to get bargains in that kind of atmosphere.

    Longer term once the current frenzy calms off, prospects will be steady as always with the Adelaide market, long term value add propositions are the way to go.
     
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  7. Cia

    Cia Well-Known Member

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    Absolutely they're selling around 20% extra. This awesome house in Eden Hills, sold for $1,020,000. They were quoting $750K when it was first listed. V unique. But less desirable properties are also being snapped up esp on subdividable blocks.
     
  8. Cia

    Cia Well-Known Member

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    Sold House - 6 Yalanda Street, Eden Hills, SA 5050
     
  9. boganfromlogan

    boganfromlogan Well-Known Member

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    Yes mine is sub dividable!!!
     
  10. Cadbury99

    Cadbury99 Well-Known Member

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    Adelaide is either on fire or I maybe I just got very lucky!

    Had a house in Salisbury North which hadn’t grown in value very much at all in the 10 years I owned it. Was coming to end of IO loan period and I no longer have the serviceability to refinace and so, as I did not want to start repaying principle, my only option was to sell.
    I initially listed it with a price range which matched recent comparables. There was lots of interest so I agreed to remove the price from the ads. Agent went out to all interested parties and asked for their highest and final offer.
    There were several offers that already exceeded my expectations and then one offer around 55k higher than everyone else. It was subject to finance but no b&p. The finance clause named another property he would also put up as additional collateral.
    I was nervous that the finance would not stack up as the offer was way above what it is worth but it did! The bank wanted a full on site valuation - I’ guessing because of the price.
    To add to my nerves, last week there was a big hale storm in Salisbury North and the roof of the pergola which runs down one side of the house was completely trashed.
    After quickly checking the contract it became clear that in the standard SA contract this damage was the purchaser’s liability not mine.

    Settlement happened earlier today without a glitch.

    I do not understand why someone would happily pay around 30% more than I would have accepted. Perhaps they know something I don’t!
     
  11. 2FAST4U

    2FAST4U Well-Known Member

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    That's a great outcome! Prices have been rising and a lot of people have been getting FOMO recently, particularly owner occupiers. Adelaide houses are up 22.5% annually.

    upload_2021-11-2_15-24-22.png

    A colleague from work has been looking for properties all year and has watched the values jump by 150k+ throughout that period in his preferred location as a PPOR. He ended up purchasing a house a few weeks ago for 40k over the price guideline in a suburb that he was not even tracking. I think he's overpaid by at least 60k but he was just getting desperate to get into the market. In his case he also increased his budget by 100k as well within the space of 6 months.
     
  12. NickWCBA

    NickWCBA Well-Known Member

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    But has anyone really overpaid? I’d argue they haven’t. Particularly not when the market is yet to find its equilibrium.
    I’d also argue that in 10 years time there will be some people bragging about the bargain they got! While others will be kicking themselves they sold.
    Nature of the beast.
     
  13. boganfromlogan

    boganfromlogan Well-Known Member

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    I don't buy the proposition that we are in normal territory.....it smells like the boom to end all booms!!
     
  14. D.T.

    D.T. Specialist Property Manager Business Member

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    Thats what we say every decade though isnt it?
     
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  15. boganfromlogan

    boganfromlogan Well-Known Member

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    There are demographic reasons to underpin, the death of baby boomers, the fact that gen x won't have long lives, the reliance on millennial ( not so interested ).

    But the pandemic and immigration may also be a factor. Can Australia shake off its racism and embrace immigration? Not in my lifetime........

    So the theory that everything is a cycle ( BS anyway ) won't stand test of time.

    Now if it's a spiral ........ well .....
     
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  16. D.T.

    D.T. Specialist Property Manager Business Member

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    Its a cycle - property goes up and down every few years. Different reasons each time - increase/decrease of credit availability, net migration, covid has helped fuel the current upswing, interest rates up or down, etc etc

    Those who have been invested in it long enough, know that its just a matter of time spent in the market rather than trying to time it.
     
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  17. 2FAST4U

    2FAST4U Well-Known Member

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    In the long run they probably haven't overpaid, particularly if we keep seeing double digit annual growth in houses. However, the property my colleague bought was definitely above market value with the price they paid for it. They were looking at properties in the Adelaide hills and ended up purchasing in the southern suburbs. Two completely different markets. At best they overpaid by 40k and at worst they overpaid by 100k. For context they spent high 600's.
     
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  18. Never giveup

    Never giveup Well-Known Member

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    Aldinga beach and Happy Valley both are on my shortlist but as 2nd (HV) and 3rd (AB)..I was mainly focusing on Hallett Cove and O'hallaron hill area but the way prices are increasing I may have to put #3 as my #1 lol
     
  19. D.T.

    D.T. Specialist Property Manager Business Member

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    Why that order? What's your budget?
     
  20. Never giveup

    Never giveup Well-Known Member

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    700k + expenses etc....but like everyone else happy to get anythinh around 600K ;)

    There waa a prop in HC we really liked and offered 630k but ;(