City fringe suburbs in Adelaide continue to be preferred investment area: HTW

City fringe suburbs in Adelaide continue to be preferred investment area: HTW
City fringe suburbs in Adelaide continue to be preferred investment area: HTW

In the $500,000 to $800,000 Adelaide price range, there is activity in city fringe suburbs as always, according to Herron Todd White’s (HTW) latest monthly market report.

The property advisory firm says that first home buyers who can purchase a quality property under $500,000 within proximity of the CBD are generally in a happy situation.

The buyer demographic is generally home buyers and those upgrading. Older first home buyers are also active in this market segment.

There is increased interest in properties under $500,000 in suburbs close to the CBD. Closer proximity to the CBD in this price bracket generally results in greater interest.

In Adelaide, a purchase price of between $500,000 and $800,000 provides buyers with a myriad of options. Within five kilometres of the CBD, this property will typically be detached and may be renovated. Outside of this radius, buyers can purchase a detached dwelling on a good sized allotment which has likely been renovated.

One example would be a three bedroom home at 71 Whitmore Square (pictured above) that is for sale for $580,000.

This price range is generally affordable for purchasers with a dual income. It’s becoming increasingly difficult for purchasers with a single income to enter the market at this price point without a substantial deposit to cover stamp duty in particular.

"Properties in the outer northern suburbs between $200,000 and $400,000 are probably slowest at the moment with the predominant buyer in this area being investors with larger deposits who are more risk averse in light of economic uncertainty within the region," the report advised.

There is decreased first home buyer activity as well as decreased investor interest given economic uncertainty with the pending closure of the Holden manufacturing plant at Elizabeth.

The level of market activity at different price points does depend on location and generally proximity to the city and facilities. Affordable suburbs adjacent to popular and more expensive areas are also experiencing increasing market activity as buyers seek affordability.

On the other end of the spectrum, northern suburbs such as Andrews Farm have experienced somewhat stagnant market conditions in the past few years. This is an outer northern suburb situated approximately 32 kilometres from the Adelaide CBD. Increasing development of new housing in this area is causing demand for older dwellings to drop.

Tags: 
Adelaide Htw

Comments

Be the first one to comment on this article
What would you like to say about this project?