The South Australian market is moving strongly into the summer and could be set to heat up
According to RP Data, in the 12 months leading up to November, the median value of property in Adelaide grew by 4.4 per cent.
RP Data also says that Adelaide, along with Sydney, Melbourne and Brisbane, were the only capital cities to record an increase in home values over the past three months.
According to SQM, the high asking prices for three-bedroom houses in the City of Adelaide are indicators of a healthy market.
In the twelve months leading up to November, the asking price for three-bedroom dwellings in the city grew to 23.2 per cent.
Dwellings of this type have also undergone a 9.4 per cent increase in asking price over the past three years.
However, house-value growth in the rest of South Australia has not been as strong as the state’s capital.
The REISA reports that the median price for the regional housing market dipped slightly to $263,750.
In the past year, the southern region of South Australia has seen asking prices contract by 3.0 per cent, while asking prices in Murraylands contracted by 3.4 per cent.
However, the REISA also expects market activity in regional areas to increase as the summer months roll in.
REISA president, Ted Piteo contends that the third quarter is always traditionally slower in sales and the regional areas are no exception.
He says that as the weather warms up and interest rates remain at historically low levels, more and more vendors and purchasers should be entering the marketplace as the year goes on.
The REISA reports that the suburbs that have seen the largest growth over the most recent 12-month period are Port Pirie, Barmera and Murray Bridge, with increases of 11.57 per cent, 7.26 per cent and 5.43 per cent respectively.
Wayville is probably best known for the Royal Show which is held there each year. Generally speaking, it is a popular spot, particularly with young professionals who work in the city.
From Wayville, you have great access into the city via tram or directly down Road. The same road also has lots of little quirky shops. It’s a great high street where people gather to socialise.
The area offers lots of character and period-style homes. Prices in Wayville tend to be fairly high but it is a good entry-level suburb for people who aspire to bigger and better things. Most of the properties tend to be smaller homes on small blocks as opposed to some of Wayville’s more expensive neighbours such as Unley, which is further east.
Due to the limited amount of properties for sale, lots of people are attending auctions and open homes. That is also true across inner Adelaide. There are some very good prices being achieved at the moment.
In terms of the rental market, lots of young white-collar workers are looking to live in that area due to its proximity to the city. International students also tend to look for accommodation in Wayville because a number of major university campuses are in the CBD.
Currently, owner-occupiers in the area tend to be a nice mix of white‑collar young professionals and older people who have been living there for decades. But more and more, those older people are slowly moving out and they are being replaced by younger people who move in and fix-up or extend the house and add value to it.
For investors looking for a low entry price, the suburb offers classic 1970s cream-brick, two-bedroom units. Moving up in the price range, you could buy a small character home.
There is not much room for development in the suburb but renovation opportunities certainly abound. However, as a renovator, I would not be putting on large extensions. Just stick to the basics – that’s where you’ll get the most bang for your buck. I would focus on the kitchen, bathroom, paint, floor coverings and a little bit of gardening.
I think the outlook is very good for Wayville due to its proximity to the city and the character of its homes. Wayville, so far as the location is concerned, is not going to move. As far as the character of the area is concerned, they are not building any more original or period character homes so that will be on many people’s radar as time goes on.
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