Adelaide residential buyers seeking affordable further out: HTW

Adelaide residential buyers seeking affordable further out: HTW
Adelaide residential buyers seeking affordable further out: HTW

There are limited properties under $500,000 within suburbs close to the city, according to the latest Herron Todd White report.

The valuation firm suggested the market for older units even close to the city is somewhat stagnant as there are larger numbers of newer apartments and townhouses on the market and decreasing numbers of first home buyers that may have previously considered a unit for a first home.

As a result, there are more residents moving further from the CBD to seek housing within an affordable price bracket.

HTW noted there is increasing in-fill development within suburbs such as Happy Valley as well as new development in Woodcroft which is improving the overall appeal of these suburbs.

"Although further from the CBD, these locations are well serviced with local shopping facilities in good proximity.

"These suburbs provide good opportunities for first home buyers seeking detached housing within the $300,000 to $400,000 price bracket.

"These opportunities are few and far between within close proximity of the CBD with the exception of smaller unit style accommodation.

"These areas have fairly consistent levels of demand from buyers and tenants alike."

An example of the price differences between suburbs was shown with a Woodcroft offering, situated 20 kilometres from the Adelaide CBD, while Parkside (situated in the Unley Local Government Area) is situated within three kilometres of the CBD.

A property on Mawson Circuit, Woodcroft sold in March 2016 for $330,000. It is a circa 1994 3-bedroom, 2-bathroom dwelling with single garage (under the main roof) on a 435 square metre allotment.

In comparison, a circa 1990 3-bedroom, 2-bathroom dwelling (350 square metre allotment) on Kenilworth Road, Parkside sold for $705,000.

This reflects a 47% difference in price and provides a good indication of the impact proximity to the CBD has on a property.

HTW advised the median house price in Woodcroft is $365,000 while in Parkside it is $705,000.

In summary, well serviced, quality housing within proximity of the CBD will continue to experience good demand.

Coastal areas such as Henley Beach and Grange will also remain popular given their proximity to the beach and good access to the city and surrounding shopping and café facilities.

The report noted that many busy potential purchasers in the Adelaide market are chasing the elusive work-life balance and are therefore seeking properties where everything is done.

"Lower maintenance properties mean more time to spend with family and friends.

"Popular property types as always are dependent on life stage.

"For example, many young families are still keenly seeking larger family homes with a back yard while those downsizing appreciate the low maintenance lifestyle that a new property on a smaller allotment offers.

"Given the increasing townhouse and apartment construction in the CBD and surrounding suburbs, potential purchasers in Adelaide are gradually moving away from large detached dwellings particularly in less affordable locations.

"Quality housing in suburbs within ten kilometres of the CBD has always been attractive to long-term investors and this is the same for home owners.

"Suburbs that provide proximity to the CBD, good shopping facilities, access to public transport, reserves and local cafes are attractive for investors and home buyers alike."

Tags: 
Housing Affordability Adelaide

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