Domain’s latest House Price Report showed Adelaide’s property market was a little subdued in the September quarter, but Toop&Toop’s founder says the city is a safe investment.
Unlike other capital centres, Adelaide was sheltered from the recent house market downturn, and Anthony Toop puts it down to the city thriving off consistency.
Due to the “steady as you go” nature of the festival city, it has attracted many investors who do not like surprises, such as superannuation funds who like reliability even though it does not deliver stellar performances or fall short, the Toop&Toop founder told Real Estate Business.
“Adelaide is consistent; you might say boring,” Mr Toop said.
There are also a lot of public servants in Adelaide, like Canberra, which results in consistent incomes.
Located between the ocean and a mountain range means there is limited land for the city to expand, so the market cannot be flooded with new housing.
Additionally, with Adelaide being centrally located, it has the potential to be a hub for those who can work remotely or want a better lifestyle, Mr Toop said.
“It is a conservative city, but looking forward, it has a fair bit to offer. People who are burnt out from the big cities can move here and operate effectively with modern technology,” he said.
With some of Australia’s best wineries and many lifestyle activities nearby, many people move to the area because their money goes further.
“If you were looking for a property in Sydney with $5 million, it wouldn’t go far,” Mr Toop said. “If you walked into Adelaide with $5 million, you are treated like a rockstar.
“We have people coming to Adelaide after they sold their home for $3 million; they spend $2 million on a house here and have money left over to buy the rockstar car.”