Own quite a few IPs in ADL, mostly equivalent to suburbs like Doncaster, Blackburn, Toorak, Glen iris in Melbourne, where they are blue chip suburbs. Big blocks, full standalone houses. Most have been holding for close to 7 - 10 years, the bests (those acquired before 2008) have grown over 70% but those acquired after, hardly gone over 20%. Been thinking whether to let go some of these underperforming ones or keep waiting. Problem is i don't see much miracle happening in ADL for at least next five years... While there are still pockets in Melb where there are very high potentials. I really like ADL, but what would melb be like in 5 years? Even a downturn, melb prices still grow at less than 5%.....
That's some pretty optimistic forecasting for Melbourne in the future. How confident are you about that?
I think since you're in quality areas, you're better off holding. The transaction costs alone (CGT, Sales agent fees, loan payout fees to exit, then stamp duty, loan application fees etc to re-enter) will eat up your return and I highly doubt Melbourne is doing enough to counter that.
I'm from Melb, would really love to know what are the Adelaide equivalent for 1. Doncaster, 2. Blackburn, 3, toorak 4. Glen iris? I am not making fun of your comment. I would genuinely like to know .
i am definitely going to hold on to those super blue chip ones, but those in the mid tiers...i am not sure. I think ADL market is unlike other states, where suddenly one could rise up and becomes a premium area....If it is going to do that, you would at least seen 30% within 6, 7 years....
It's a tough call - there's a lot of movement in the Adelaide market right now - depending where the properties are located would dictate whether it's worth selling/holding. Adelaide is pretty healthy in its growth at the moment, whilst Melbourne is pushing the upper ends after a consistent run on values. The question is whether you might be pulling out of Adelaide at the worst time to invest at the top of a market cycle in Melbourne.
I'm not really familiar with the first 2 to be able to say, but from my visiting of the 2nd two I'd say it'd be very similar to some of these : SA - Eastern Suburb Adelaide Review
File is forecasted growth/decline in job markets by region,although not an absolute it gives an idea on where the jobs will be over the next 5 years and in what market sector..
ADL is pretty much like a mini melbourne, similar cbd layout, where there's a river and casino, pedestrian mall, chinatown etc, and leafy suburbs, industrial western and northern suburbs and laid back southern costal. To give you some ideas.. 1. Campbelltown, Glynde 2. Hectorville, Campbelltown 3. Toorak Garden, Dulwich, Norwood 4. Glenunga, Linden Park, Beaumont
Which suburbs are the mid-range ones in Atang? It would better inform where any drivers for value may be approaching or not. And what would you do with the money otherwise?
I'm sensing that Adelaide is losing a bit of momentum and urgency in the market at present - is it just me?
Tell that to my clients being outbid at strongly contested quality properties. @DaveM what are you experiences on the ground - have things eased on your experiences in the market right now?
I'm specifically referring to price growth rather than whether things are selling/selling quickly. In the couple of areas I'm monitoring..the Marion area, am not seeing a ceasing of price escalation. Happy to be proven wrong.
Prices are the function of a market - if properties are selling fast that's an indication of the supply/demand trend and whether we're in a growth/decline period. Prices are simple to look at - just go over to places like Corelogic: Monthly Indices | CoreLogic Otherwise suburb reports that Residex provide etc. so you can see how specific areas are working instead of the aggregate. Doesn't surprise me - a quick look at Marions stats showing it relatively flat compared to Adelaide metro.
The agents in Southern Adelaide and the Fleurieu Peninsula would be probably disagree with you there.
I don't know the Marion area well, but didn't it have a pretty good run in previous years when the development plan changed? Suggest that would have put a bit of stock into the market.
