Part four in our series of area reviews, David and I will cover off on some of the more active inner north/north eastern suburbs which investors may be looking to invest in. Area overview The inner Northern/North Eastern hub is under three main councils – the Adelaide City Council, Prospect Council and Walkerville Council. With most of these properties being old suburbs of Adelaide, the streets are largely filled with quality character homes on large allotments. Even though they are generally on blocks which are upwards of two times the median block size of Adelaide, the micro councils of inner Adelaide restrict development – so they can maintain the heritage of the area. Concessions have been made along transport corridors such as Prospect Rd and Churchill Rd, where there is a surge in apartment construction. These areas fit the middle to upper demographic of Northern Adelaide suburbs, with significant gentrification occurring across many of the main shopping and retail strips. Median Prices Medindie tops the list considering – unsurprising for an locals as this area has some of Adelaide’s largest turn of the century mansions, some sitting on excess of 4000sqm. You’re unlikely to buy a property to rent in this area, but it is important to understand the flow on popularity that these suburbs can have on adjacent areas. Devon Park represents the lowest median – a relatively unknown area, it is a small suburb which has old industrial sites which are being decommissioned and townhouses built in the area. Directly adjacent to Prospect, it may well see a rise in popularity as affordability pushes people into the area and the suburb street scape improves. Demographics All areas within this review except Devon Park have incomes significantly above the metropolitan median, this is expected with all suburbs being above the metro median house price. Medindie and Walkerville standout with the highest age and household incomes, which also matches with the highest medians in the areas – a clear correlation. Why Inner North/North East? One of the most desirable areas of Adelaide Large property sizes above the metro norm as small micro councils refuse development on the character filled streets – fuelling growth through a lack of supply for an increasing buyer pool Large gentrification in progress – with cafes, restaurants, dessert bars, independent fashion retailers Ease of access to both CBD and middle ring North/West/East employment hubs, including substantial public transport infrastructure Corey’s Suburb Pick Prospect An average Prospect Bungalow, a common construction style for the area Adjacent the CBD and North Adelaide, Prospect represents an established character suburb going through significant uplift as being a ‘trendy’ suburb of the inner North. Prospect Rd is filled with cafes, restaurants and retail – being supported by the Prospect Council to make this a vibrant hub. Whilst prices have already risen strongly over the recent years, the comparative value in terms of property size and quality is still lower than its Southern and Easter counterparts. I believe over the long term Prospect will continue its strong growth trend as desirability and lack of supply keeps upwards pressure on prices. Corey’s “what do avoid” Apartments Apartments being built in Prospect Council utilising the relaxed development plan for high density construction on main transport corridors With the rezoning along the transport corridors in the Prospect Council, there has been an exponential surge in apartment development in the area. This ongoing supply will have difficulty in selling in an area where there isn’t strong demand. CBRE has noted in a recent Adelaide property summary that developments along these corridors have as much as 25% of stock failing to sell in the last year alone, with this year’s stock levels to exacerbate the issue.