SA Areas left In Adelaide.

Hi guys, it’s no secret that Adelaide has grown a significant amount in the last 12 months. Is there any areas left in Adelaide or surrounds that still preset good buying opportunities. Ideally the Christie Beach/downs and surrounds would be great but a touch mire on what I can spend atm. looking at the Elizabeth region or would further North be worth a look. There is an abundance of land there so it’ll be developed at some stage. Anywhere else I’ve overlooked.

 

It's all gone up. Especially houses across the board. Units have lagged a bit, so you might get an ok deal on that, assuming that fits what you are looking for. How will demand/values change wants borders open up? I have no idea.

 

South has gone up more than north has , but all has gone up. Owner occupied areas seemed to have done the best.

What kinda budget do you have?

 

Up to 300k mate on this particular deal. Open to other States also, but though I'd focus on Adelaide at present as yet to secure a property there & can see it having a good 2022. Can you suggest anywhere ?

 

12 months ago if you had 300k I'd have written you a few options. Now I dont think there's any in terms of standalone houses. Whats your thoughts on units?

 

What about the Elizabeth region or Salisbury ?

 

Elizabeth maybe but most Salisbury suburbs are over the 300k mark.

2 Olympia Crescent, Hackham West, SA 5163 https://www.realestate.com.au/property-house-sa-hackham+west-137494162

Something like this may fit in that budget. Hard work may be required.

Hackham and surroundings may present a few options in that range

 

City of PLAYFORD
Suburb ELIZABETH DOWNS
Q3 2018 ; sales 20, median house price 183,000
Q3 2019 ; sales 23, median house price 190,000
Q3 2020 ; sales 26, median house price 210,000
Q3 2021 ; sales 39, median house price 250,500
Net capital gain over 3 years = 36.88% but still a very affordable suburb.

Not a recommendation, do your own due diligence.

 

City of ONKAPARINGA
Suburb of HUNTFIELD HEIGHTS
Q3 2018, sales 17, median 281,000
Q3 2019, sales 8, median 280,000
Q3 2020, sales 11, median 300,000
Q4 2021, sales 20, median 330,500
Take the median house prices with a grain of salt since sales numbers are so low, but this is the cheapest suburb to the South of Adelaide. Net capital gain over 3 yrs = 17.6% (which is less CG than what most suburbs of metropolitan Adelaide has seen).

again, not a recommendation, do your own DD

 

edit for above post (oops, timed out)
Metropolitan Adelaide median house prices over the same period 19.40%
Q3 2018 $469,000 vs Q3 2021 $560,000

Data set used : Median house sales by quarter

So using 19.40% CG for metro Adelaide as benchmark, here are a few suburb that have underperformed Q3 2018 -Q3 2021;
Gawler East 8.97%
Sheidow park 7.89%
Seaford Rise 8.62%
Burton 10.78%
Wynn Vale 10.27%

Maybe these areas still offer 'value' since they haven't moved up as much, or maybe they are under-performing suburbs due to another factor (maybe oversupply) and will continue to be under-performers in to the future, or maybe just statistical outliers have skewed the medians (some suburbs only had 20 sales for the Q3).... IDK...?

 

I looked at quite a few properties in Seaford Rise a bit over a year ago. It seemed such an attractive area. I would have thought growth would have been better.

 

I understand why people want to invest in Adelaide. Adelaide has good rental yield and still affordable. However, do you think Adelaide would be a good investment for long term?

 

As you have touched on, the market down there has gone crazy over the past 12 months. Christie Beach and its surrounds have pushed well past 400k for nearly all established properties. Even suburbs further from the beach like Hackham West have had properties go well over 400k. On the Northside, numerous suburbs within the Salisbury LGA have pushed well past 300k. Most being around the 400k mark. Thus, you would be limited to Elizabeth and further out. Although it may be a lower demographic area we have seen time and time again that lower SES areas have still seen significant growth when the market moves. However, I would make sure you do your due diligence and engage a PM who knows the area well.

 

I am a massive fan of Adelaide and believe it has enormous potential. When you look at historical price growth, metro markets have seen to perform relatively similarly over the past 50 years. Given the significant price discrepancy between Adelaide and the larger metro markets, I expect it to close the gap price-wise over the coming years. Past performance does not predict future performance but it can give us a pretty good idea of what could happen. Outside of the data dive, it is also a beautiful place and I can see why many people would be drawn towards living there.

 

Thanks mate I’ll take a look at those regions. Do you know the areas of the Elizabeth region to avoid and what may present good buying

 

Thanks Erica for the insight that was very helpful. Would you perhaps go for something in the low 200’s in the Elizabeth region for say something on a smaller block or look for something with upside such as a development site in that area

 

Will take a look

 

Most of the Elizabeth are more or less comparable - I would consider in the following order
Elizabeth Vale
Elizabeth East
Elizabeth Grove
Elizabeth Park
Elizabeth Downs/South
Elizabeth North

I think if you do get a good PM - that may assist in managing. If you can get your hand on a pair of Maisonettes that may be one option.

 

I think so mate, look at Tasmanian and what is happening down there

 

Yes Elizabeth and surrounds North look like the areas of interest, I’m saying that a place with upside such as a larger development future site might be the approach in those area’s. would you recommend anywhere else mate ? Or Will the budget not allow that