SA Adelaide Western Suburbs - City to Sea

Called open space contribution here, $6488 per additional lot when I did mine.

 

@Xenia

What interests me is the potential in these areas to make money on a simple development? For example, perhaps a corner lot where you retain a house and build at rear.

Can you tell me where developers are jumping in, what areas???

I am trying to target areas that have reasonable end values, building costs don't change, therefore you have a better chance of making better returns.

MTR

 

Depends on what price range you want. For lower end look at suburbs in councils Onkaparinga, Playford or Salsibury.

For up a notch look at suburbs in Councils Marion and Charles Sturt.

Avoid Mitcham council, they decline everything.

 

Is that the same for medium and high densities?

 

Dec API Hotspots(waves) for Adelaide:
Fulham Gardens, Findon, Flinders Park, Torrensville
Kilburn, Broadview, Northfield
Windsor Gardens, Dernancourt, Paradise, Campbelltown, Newton, Athelstone

 

Just to add to this - there doesn't seem to be a whole lot of money available in developments in Adelaide at the moment, unless you get a stunning deal. Most people i know who are doing them, bought their sites before recent increases.

Sorta doing the same myself - collect land and collect positive cashflow now, develop down the track a bit. This might not suit all strategies / goals.

 

Are these the areas you would recommend for our strategy of buy and hold for CF+ results?

 

Generally from outer areas inwards gives best to worst yields, in any city. There's a few exceptions of course.

 

Hi Xenia.....I have properties in Parafield Gardens, Paralowie some growth there...but almost none in Elizabeth.

Isn't the Western suburbs quite expensive already?

What about the southeast suburbs?

 

CF+ seems to be North-east suburbs Elizabeth and surroundings but may have to put with potentially bad tenants

 

I think both the East and West suburbs of Adelaide have the potential for very high growth just due to the geography of Adelaide, you can't build in the sea (yet) and the hills restrict further land release. What is there is all that will ever be there.

There is urban infill - which itself creates opportunities, but just applying the simple concept of supply and demand will tell you that when supply is restricted demand will go up.

The eastern suburbs are higher entry point but absolutely if you have the capacity to purchase in Adelaide East it will be an excellent investment.

You may get more for your money in Western suburbs however. Villas in Lockleys, Glenelg or West Beach will also hold their value well.

 

Almost none?

My parents live in Glenelg - they purchased a huge property for $195,000 back in the 80s now worth just over $1 mil.

My first property was in western suburbs, I purchased that at $125,000 in 1989, now valued at $850,000.

It was always expensive, $125,000 was expensive for back then.

Southern suburbs will be more in demand in future because there is less land there to be built compared to Northern suburbs.

Also, southern suburbs in some areas like Christies Beach have sea views and there are only so many properties that can have that.

 

There is lots of active development at the moment in the Western suburbs as the development laws through west torrens council can be very favourable.
I manage a huge amount of properties in the Western and Eastern suburbs and almost all of the older style properties in the Western suburbs are earmarked for development - either demolition and rebuild or building in the back.
I have done developments in the area myself and also own property in these suburbs.

 

This made my day

 

You can still get a freestanding house for under 300K in the west:

Seaton 18 South Parade Seaton SA 5023 - House for Sale #121524934 - realestate.com.au
Woodville North 8 Hall Court Woodville North SA 5012 - House for Sale #121513402 - realestate.com.au
Largs Bay 233 Victoria Road Largs Bay SA 5016 - House for Sale #121438810 - realestate.com.au

Or you can buy in Ottoway or Rosewater if you don't mind the smell

 

Hi Joel
I like the Largs bay property.
Lots of value add potential.
Big block.

 

Me too, you'd hope it's structurally ok, and you'd need deep pockets

 

True may need to factor in some improvements but as a buy and hold the Largs north offers more potential.
Better area, near the beach, lower entry price and larger block.

 

How does the council treat development up there?

 

Need to be careful in some parts, because lots of heritgage listed properties in the area.

Here's an excerpt from the email I got from my Surveyor when I did DD on a house in that suburb, which was a non-heritage listed 960sqm corner block. :

It is in a Residential Character zone, rather than a plain Residential zone, and yes, you are correct, the land is situated within the Semaphore/Largs Policy Area 72.


Council’s Development Plan states that dwellings in this policy area should have a minimum site area per dwelling of “600 square metres per detached dwelling”, or “250 square metres for all other dwellings”.


In other words, there is not enough land to create even two allotments for detached dwellings (at least in terms of the figures stipulated in the Development Plan), but Council may consider an application for three allotments for three semi-detached houses. In order to get three titles for new allotments, you would have to lodge plans for three detached dwellings and then commence the building of the three dwellings before the new titles could be applied for at the Lands Titles Office.


I spoke to a Council Planning Officer this morning and she confirmed the points above which I had read in the Council Development Plan. She suggested too that if you were serious about the development of this property that you may wish to ring the Council Heritage Advisor to discuss any potential issues with regard to the division of the land, as a development may be considered to have an effect on the adjoining properties – and this could potentially affect your ability to subdivide the land.