The market in Adelaide is beginning to show steady improvement
Adelaide experienced solid growth over the year to September, with prices rising by 5.8 per cent, according to RP Data.
Despite these gains, values across the city remain depressed compared to previous upswings. According to a report by the Residential Development Council, prices in Adelaide remain 2.6 per cent below their previous peak, suggesting the market still has a way to go before it sets any new price records.
Nonetheless, the market is showing signs of life, according to Herron Todd White. The firm reports that clearance rates are above average, time on market is falling and vendor discounting has decreased. However, they warn that high-quality properties may be in short supply.
Sales turnover also seems to be picking up speed – RP Data reports dwelling sales are up by 9.3 per cent over the previous year.
The city’s most popular suburb is Evandale, east of the CBD, according to Homely.com.au. Users of the site gave Evandale an average score of 96.06. However, regional areas also scored well on the survey. The suburb of Hewett, in the town of Gawler, was given an average rating of 92.14. Meanwhile, Tiddy Widdy Beach, located across the gulf from Adelaide, scored a respectable 90.11 from local fans.
The town of Mount Gambier was also thrown into the spotlight by Herron Todd White. According to their report, in the three months to October 2014, the market performed much the same as it did over the same period in 2013. In the September quarter, there were 116 sales – in the same period last year, 120 properties were sold.
Meanwhile, Strathalbyn has drawn attention for the steep discounts offered by vendors in the area. Of the top 10 most discounted homes in South Australia, three were located in this regional town south of Adelaide, according to SQM Research.
One property in Cotton Court was originally listed for $498,000, before being discounted by 35 per cent. It is currently on the market for $325,000. A property in Rankine Street was discounted by 27 per cent while another in West Terrace dropped by 26 per cent. All houses have been on the market for more than three years.
Glenunga is an inner-suburban area located three kilometres east of Adelaide’s central business district. It is not a big suburb but has a great family feel to it. The area is well-serviced with a good shopping outlet nearby called Burnside Village.
Glenunga is a relatively affluent area – most of its residents are highly qualified professionals such as business owners, managers and senior public servants. There are a reasonable number of single people living in Glenunga, but around two-thirds of the population are likely to be families.
The area is home to Glenunga International High School (GIHS) which offers an International Baccalaureate Diploma to its students. Because of its unique academic program, it is very popular among parents. However, GIHS is also a zoned school, which means student places are highly competitive. There is no doubt that many of the families are willing to pay a premium to own property in this area so that their children can attend GIHS. Glenunga is also close to various other quality schools, which enhances its level of attraction to families.
There is a very diverse range of properties in Glenunga. It has everything from one-bedroom units to larger character homes. Property prices range anywhere from $250,000 to $2 million.
It offers some good, solid properties that are a little bit more affordable than some of the others that you find in the eastern suburbs. However, there is not a high volume of sales in Glenunga.
The rental market is very strong in the suburb due to its location. In particular, rentals are popular with young professionals and students. Because it is located in Adelaide’s eastern suburbs, demand is always strong for accommodation.
There are some great opportunities for investors looking to buy in Glenunga, and there are always tenants looking to rent. There are some particularly good opportunities for people to purchase older homes and renovate or knock them down and redevelop.
Depending on how much money you have to spend, I would not be buying in the upper end of the market. Instead, I would be looking to get into the middle to lower sections of the market because there are more opportunities for growth.
The area has experienced fairly consistent growth over a long period. Glenunga is a solid suburb that is just going to continue to grow.
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