PPOR Advice on the following southern Adelaide suburbs

Looking to buy in the second half of this year and wanted to gather some locals thoughts on a few areas I am interested in. I usually like to rent in the area to get an idea but it seems the market is getting fairly heated down here!

Currently looking at the following (in order):

Hallet Cove - Probably the most desirable/ideal location for me from what I have researched. Seems extremely undervalued.

Sheidow Park - Inland from Hallet. Second preference

Trott Park

Flagstaff Hill/Aberfoyle/Happy Valley

Reynella/Reynella East

Budget is looking to be around 400k to 550k on the very top end. Would love to hear your comments even on surrounding areas of the above.

 

Nice spot, but lacking TV reception, Phone reception and sadly, NBN installed FTTN which doesn't work either.

 

My vote is for Hallett Cove- absolutely agree it is undervaled, affordable beachside with views, shopping complex, easy commute to CBD via train, can't fault the suburb at all.

 

Totally agree. The market for Hallet Cove specifically has shot up massively in the last year and I expect the trend to continue. Come time to buy towards the end of the year I feel I may be priced out of the market. Thanks for the insight!

 

I had a quick look at resales in Hallett Cove, seems like some good capital growth going on for houses (not units/homettes), it's always a bit hard to tell how much of the appreciation is due to genuine capital growth vs capital spending by the owners (ie, on a new bathroom)...but anyway have a look at the attachment if you like. With a RP Data paid subscription you can get access to photos from old listings that can give more of an idea if owners have spent money on reno's, but it's a bit academic, if the market has hot competition at present, looking at old sales can have only limited use.

 

Definitely good capital growth for SA (am in the market for a detached home). Will be something to keep an eye on - hopefully more supply enters the market in the middle months otherwise the growth will speed up a little too quick for my liking. Thanks for the info!

 

Quite a bit of new supply is expected mid to late year. Building approvals for private sector houses are at highs not seen in decades on the back of Home Builder.

 

I've had a dive into the ABS dwelling approval data set (Dec 2020 not yet released), there were 577 more house approvals Jan-Nov 2020 compared to Jan-Nov 2019, which is a 7.625% increase.

I wonder if this amount of construction would materially lead to an oversupply in the next few years??

I guess it depends on our population growth (particularly migration into Adelaide) over the next few yrs, I wonder if we'll actually see an increase rather than the long running trend of people migrating out of SA?

The most recent ABS Regional internal migration estimates, provisional release June 2020 had an interesting little comment for South Australia's internal migration: "The net gain for the June 2020 quarter was the first quarterly net gain for the state since September 2002 (+100 people)."

Maybe the start of a new trend...?? Hmmm dunno.... Next ABS release date 2/2/21, that'll be interesting.

 

A lot of it will depend upon jobs.

Have a look at the top stories on the front page of the Advertiser at the moment:



SA Steel Supplies - Closed by receivers
Events hire company likely traded insolvent since 2019
Builders set to close (What happened to home builder?)

 

@Robert Chatsworth , the Advertiser is a 'doom and gloom' merchant, I've sworn off reading newspapers. I've got a more optimistic outlook- perhaps the great leap forward in working from home may see more and more people dislocate themselves from the area that company headquarters is in, and move to more affordable city/towns and work remotely..... meh.... who knows what the future will hold...?

 

Adelaide property values up as gulf between affluent and affordable suburbs grows - InDaily

"The five-year trend map included in the latest PointData report shows the whole of Adelaide has increased in value over the past five years on an annualised basis and Giannakodakis said that was likely to continue for some time.

The southern and the northern areas are doing OK but as you move closer to the city it’s increasing in some areas at 2.5 per cent per annum so over five years that’s quite a substantial rise. It is saying that the more affordable suburbs have stayed relatively affordable, particularly compared to other cities in Australia, but there is a growing gulf between the more affordable and the more affluent areas.”

Some interesting analysis. It certainly appears to be the case in the suburbs I'm looking at (Inner South). Michael Yardney has made a career out of these observations.

In your case I'd have a 550k budget and find the best house you can in Hallett Cove as your PPOR. Interest rates look like they'll be remaining low for a very long time.

 

Thanks for sharing, very interesting article.

 

Hi @ jgrobs,

Just touching base to see if you have secured anything in the area?

chers