Investing in Adelaide Property…
While South-East Queensland continues to be the preferred hotspot for in-the-know long term buy & hold property investors the good news for SA property owners is the Adelaide market continues to perform solidly.
On a national level Adelaide often flies under the radar for investors – it’s perhaps the most under-rated of the capital cities, despite having delivered good growth rates in the past.
You could be forgiven for thinking that not much is going on with Adelaide property prices. According to one set of figures, house values are up 3.9 percent in annual terms and units 3.6 percent.
But Adelaide is busier and more vibrant than those numbers indicate, particularly when you look at sales activity.
Adelaide started 2017 in solid fashion and continues to be one of the strongest city markets in the nation in terms of sales activity.
Generally, Adelaide had a solid year in 2016. Each of the four quarters had sales activity on a par with, or higher than, the corresponding period a year earlier.
This continues a pattern of steadily rising sales over the past three years. In 2014 the SA market recorded between 7,000 and 7,500 dwelling sales per quarter. In 2015 sales rose above 8,000 per quarter and in 2016 every quarter was above 9,000 sales.
Our research indicates that the growth suburbs in Adelaide are primarily middle-market areas and outer-ring precincts, with a few top-end markets also standing out.
Another thing worth considering about Adelaide is the rental yields on offer – with the typical yield on a average priced house being around 5-6%, going up to as high as 6-7% for properties in many of the cheaper metro areas.
Adelaide is also the most affordable mainland capital city with a median price of just $420,000, and a huge range of properties available around the $500,000 mark.
We’re not without a few challenges however – SA has the highest unemployment rate of the states and continues to face headwinds in a number of industry sectors, namely steel and automotive. In addition, net interstate migration outflows also continue to rise.
On the positive side there’s a bit happening in metro Adelaide thanks to the State Government’s 30-Year Plan for Greater Adelaide.
Renewal SA is initiating urban renewal developments, led by four major projects valued at over $2 billion. The largest project will see the population of the small inner suburb of Bowden grow from a few hundred residents to 3,500 over the next decade. This area is currently being revitalised with cafés, restaurants, shops, offices and parks.
The old AAMI Stadium at West Lakes is also being redeveloped. In 2014, the SANFL sold AAMI Stadium to developers Commercial and General for $71 million, who are developing site into a mix of residential, commercial and community land uses. The project is called West and an estimated 1,600 homes will eventually occupy the site.
Another Renewal SA project will see land adjacent to the Woodville Railway Station transformed with a mix of medium-density to high-rise dwellings.
In addition to these larger projects there’s a range of quality boutique projects in Adelaide offering excellent returns for the locally-focused investor. Below we’ve highlighted some of the current property investment opportunities we’ve sourced for our clients.
Update: Adelaide claims top residential growth market [Terry Ryder – PropertyObserver.com.au]
Adelaide Property Investment Opportunities
Updated: Friday, April 3rd, 2020
Here is a list of some of our recommended turn-key fixed price investment opportunities in Adelaide;
|Bowden||Apartment [x26]||No||$345-795K||$350-710 pw||4.64-5.28%|
|Salisbury North||Apartment [x 3]||No||$221,000||$220 pw||5.18%|
|Royal Park||Apartment [x 2]||No||$329,500||$330 pw||5.20%|
|Royal Park||House [x 2]||Yes||$401,000||$420 pw||5.45%|
|Lightsview||House [x 1]||Yes||$465,000||$440 pw||4.92%|
|Christies Beach 1||House [x 1]||Yes||$394,950||$385 pw||5.07%|
|Mawson Lakes||House [x 1]||Yes||$378,862||$400 pw||5.49%|
|Evanston South||House [x 1]||Yes||$349,850||$350 pw||5.20%|
|Ferryden Park||House [x 1]||Yes||$395,250||$420 pw||5.53%|
|Munno Para||House [x 1]||Yes||$307,000||$285 pw||4.83%|
|Hectorville||Terrace [x 5]||Yes||$499,990||$465 pw||4.84%|
|Aldinga Beach||Townhouse [x 1]||No||$289,000||$275 pw||4.95%|
|Christies Downs||Townhouse [x 4]||No||$297,500||$300 pw||5.24%|
|Kilkenny||Townhouses [x 6]||No||$389,000||$390 pw||5.21%|
|Christies Beach 2||Townhouses [x 19]||No||$319-409K||$330-410 pw||5.34-5.38%|
TAKING THE NEXT STEP…
We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.
To secure a property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval.
>> If you would like to enquire about any of the above properties please call Sam on 0411 431 391
Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid inner city apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.
We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.
If you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.
The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.
Real Investar | Urbantech Group