Adelaide inner and middle ring suburbs the best price growth prospects: HTW

Suburbs located in inner and middle rings of Adelaide are considered to be the best prospects for price growth in the December quarter, according to a Herron Todd White (HTW) recent residential report. 

Historically, the South Australian property market slows during the second and third quarters.

But the valuers latest report says the mid-year months are dreary.

It noted the state government has mapped the quarterly metropolitan house price from June 1998 which, with the exception of notable peaks and troughs, shows slight dips in the median price through the September quarter of the year with an uplift towards December.

The valuation firm noted that the effects of the banking royal commission have begun to be felt through the mid- portion of the year.

"The ability to borrow money has tightened," the report said.

"Agents report that purchasers are being priced out of properties that may have fallen into their price bracket 12 months ago.

"This could cause a doubling down on the September quarter results given the out-of-cycle market pressure.

"The tightening in lending will not be fully quantified until the results of the December 2018 and March 2019 metropolitan median price growth are revealed," HTW suggested.

Agents have reported a slowing in a number of key market indicators leading up to September.

Buyer enquiry has reduced while available stock is limited. Discussions with agents in the field indicate the slowing in these key indicators is a seasonal occurrence which forms part of the annual property cycle.

For properties going to auction, the winter months can pose a serious threat to the hammer falling, HTW noted.

"Fence sitting purchasers who are thinking of bidding can be spooked by a simple rain shower or the threat of looming dark clouds.

"The agent who thought they had ten registered bidders now has five."

Braving the wintry conditions were the vendors of 45 Gray Street, Norwood (pictured above) who began advertising their three-bedroom, one-bathroom symmetrical cottage in July with an auction to be held in August.

A large crowd braved the cool weather to see the property sell under the hammer for $790,000.

Norwood is located approximately 3.5 kilometres east of the Adelaide CBD and consistently rated as South Australia’s most searched suburb.

The HTW valuer said" "Suburbs located within the inner and middle rings have been the best performers over the past 12 months.

"Suburbs located in these rings are considered to be the best prospects for price growth in the December quarter too.

"This sector provides options aplenty for first home buyers, downsizers, families and developers."

Within the inner ring, price pressure can be expected in the $600,000 to $900,000 range whilst the middle ring can expect pressure in the $300,000 to $600,000 range.

Recently advertised in the inner ring is 4 Marian Road, Payneham (pictured above) which comprises a character four-bedroom, one-bathroom dwelling on a 1,100 square metre allotment.

This property has been listed for sale by auction with an asking price of $800,000.

Whilst in the middle ring, 12 Aberfeldy Avenue, Edwardstown comprises a three-bedroom, one-bathroom updated 1950s home on a 660 square metre allotment.

This property has been listed for sale by auction with an asking price of $439,000.

The outer ring continues to struggle with extended days on market with stagnant and in some cases negative growth.

Post-September and moving into the summer months we begin to see an increase in the listings surrounding beach side suburbs and coastal holiday destinations.

Coastal tourist towns of Victor Harbor, Pt Elliot and Goolwa south of the city on the Fleurieu Peninsula and Wallaroo, Moonta, Stansbury and Black Point north-west of the city on the Yorke Peninsula swell with holiday makers.

This provides the perfect opportunity to promote new listings as the market pool increases.

Properties which lend themselves to holiday makers and don’t achieve sale through the spring or summer months can be removed from the market during the middle portion of the year to avoid any perceived over exposure.

Recently sold in the beachside suburb of Hayborough approximately 80 kilometres south of the Adelaide CBD is 8 Olivers Parade (pictured above).

The property provides six-bedrooms and three-bathrooms over two levels of living.

The dwelling provides unrestricted ocean and beach views and is situated on an allotment of approximately 1,200 square metres.

This property was advertised through the winter months before selling for $1.7 million.

Listed for sale approximately 170 kilometres north-west of the Adelaide CBD is 124 Black Point Drive, Black Point (pictured above).

This property comprises a three-bedroom shack with absolute beach frontage.

The property has been listed for sale with an asking price of $785,000.

Black Point is considered a blue-ribbon location with those properties situated on the northern side of Black Point Drive being some of the most sought after real estate on the peninsula.

This location has historically been tightly held with only a handful of transactions occurring annually.

This has changed in recent times with large areas of former reserve land being divided and sold as residential allotments.

"Market conditions within these semi-regional and regional costal townships remain stagnant," the HTW valuer noted.