SA Adelaide

Discussion in 'Where to Buy' started by JK78, 19th Mar, 2020.

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  1. JK78

    JK78 New Member

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    Anyone have any thoughts on the current market in Adelaide? Do you think prices will drop much in the next 30-60 days or will it be longer term?
     
  2. Serveman

    Serveman Well-Known Member

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    While I’m no expert I would expect Adelaide to be less volatile than Sydney or Melbourne in terms of price drop.
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    Adelaide hasn't seen the huge growth in property prices that Sydney and Melbourne have seen, so I would also expect there to be less of a downturn, relatively speaking.

    I think it will all come down to how well each state manages their unemployment figures.
     
  4. R377

    R377 Well-Known Member

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    I'm getting a few PM about Adelaide from interstaters - must be some interest in it !
     
  5. Peter2013

    Peter2013 Well-Known Member

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    I suspect it will be longer term, more continued falls.

    South Australia went into recession at the end of last year - well before COVID19. September quarter recorded a -0.3% fall in State Final Demand, December quarter was -0.2%.

    So falling house prices in SA is not just because of COVID19 that will come and go, but because of a more normal structural economic recession. The later will naturally take more time to repair.
     
  6. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Same, mostly inquiring about NW area.
     
  7. ATANG

    ATANG Well-Known Member

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    People always said adl market is less volatile and won’t drop as much as Melb and Syd but the reality from GFC was Adl had been hit hard throughout 2009-2015. The ripple tend to hit about 1, 2 years later than eastern states, regardless of boom or gloom.

    When eastern states started to boom in 2013-2015, adl never really took off until may be 2016, 2017 and from 2018 till now has been pretty flat. The confidence level is just too fragile.
     
  8. c_west

    c_west Well-Known Member

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    It's just a big regional, land size and the ability to add value (renovate) is key in Adelaide I believe if you treat it like Sydney or Melbourne and just rely on capital growth with no input you will be disappointed with your returns.
     
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  9. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Indeed. If you are looking at it as a neg gear, tax write off with capital gains, probably look else where. I look at it as a low risk, pos gear, manufactured equity play.
     
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  10. R377

    R377 Well-Known Member

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    Quite a few people when younger may leave to look for work in melb or sydney but also a high lot either come back to adelaide or others come from interstate. Adelaide is a much better place to raise a family, less traffic and hustle and bussle then melb and sydney. Perth is the same
     
  11. Joseph

    Joseph Well-Known Member

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    If this lockdown shows remote work to be successful, perhaps many will not have to leave the state in order to take up Sydney and Melbourne jobs in the future.
     
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  12. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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  13. Kriv

    Kriv Active Member

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  14. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Are property prices as low as they’ll go?

    "However, some locations will fare better than others,” he said.

    “The fundamentals are very strong for the medium- to long-term in certain Brisbane, Canberra and Adelaide sub-markets that we are currently recommending to clients"
     
  15. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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  16. Ben Chifley

    Ben Chifley Well-Known Member

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    Highest unemployment in the nation, beating even Tasmania. No major projects in the pipeline apart from the South Road tunnel and that will probably take years to deliver because the SA government is so broke. Debt has accelerated under Steven Marshall's government and yet we have nothing to show for it.

    We were promised 20,000 'space jobs' a few years ago, whatever happened to that?

    People without jobs really aren't the best tenants - there's a reason why its so cheap here in comparison to the eastern seaboard.
     
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  17. Brady

    Brady Well-Known Member

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    I haven't seen prices drop near me.
    How about anyone else?
    Infact I'm surprised what people are paying for properties.
     
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  18. 2FAST4U

    2FAST4U Well-Known Member

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    Prices are still holding up around the areas I've been looking <10km South and West of the CBD. Outer suburbs haven't seen any change from what I've seen and vacancy rates still appear low.
     
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  19. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Yep, North is still holding strong, and vacancies still seem tight.
     
  20. iwantahouse

    iwantahouse Well-Known Member

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    I just had a look at the area we used to rent (Camden Park). To my surprise there is a unit for rent in the same building I used to live. Same unit ground floor with private front yard. I used to pay $270 weekly until last October when we moved to our PPR.

    That unit is being rented now for $300.
     
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