Bargains below $350k tipped to spring up in South Australia
The latter half of the year could prove fruitful for investors looking for properties close to city centres and infrastructure in South Australia.
The February issue of Herron Todd White’s Month In Review report found that the South Australian property market should be entered in 2019 with caution, with the latter half of the year being one to watch.
According to the report, agents are recording a reduction of people attending opens, which, combined with clearance rates, shows demand is falling in the state. This is normal over peak summer periods, the report stated, but it may be exacerbated by tight lending conditions and could lead to a market softening.
Therefore, the report claimed the first calendar quarter would indicate the performance of the state for the rest of the year.
Where to buy?
Investors looking for a good price should focus their efforts in the middle ring at properties priced between $300,000 to $500,000, with the suburbs of Hope Valley, Dover Gardens and Ingle Farm the ones to watch.
Hope Valley, with a median house price of $397,000, is 16 kilometres north-east of Adelaide’s CBD, contains 1950s to 1970s brick dwellings, located close to Tea Tree Plaza and Hope Valley shopping centre, and is more affordable than nearby Dernancourt and Highbury.
Dover Gardens, with a median house price of $470,000, is 14 kilometres south of Adelaide’s CBD, has a mix of older 1950s dwellings and newer high-density infill development, with Marion Shopping Centre, the South Australian Aquatic Centre and Brighton Beach nearby.
Ingle Farm, with a median house price of $334,000, is 14 kilometres north of Adelaide’s CBD, has 1960s and 1970s brick dwellings, with some high-density developments cropping up, with the Ingle Farm Shopping Centre and a number of parks and reserves nearby.
In addition to the three middle ring suburbs, the report also said the Campbelltown Council area, Port Adelaide and Mount Barker were also solid suburbs to watch with some caution, due to easy accessible land in these areas.
The Campbelltown Council area, which sees homes going for $500,000 and $700,000, saw one of the highest approval rates for medium-density developments, with zoning changes seeing the prices of non-developed homes and the number of townhouses being constructed rise.
Now, the report mentioned that the council is looking to increase minimum land areas from 150 square metres to 250 square meters in order to cut down the number of townhouses being constructed, and could create buying opportunities, with prices for townhouses currently going between $450,000 and $600,000.
Port Adelaide, with a median house price of $350,000, saw growth rise in 2018 following years of declines, with a gentrification project rejuvenating the heart of the suburb bringing in new businesses and is expected to flow through nearby suburbs of Exeter, Rosewater, Ethelton, Glanville and Queenstown.
The construction of the Osborne Naval Shipyard is also expected to see an influx of jobs, with a need of accommodation in Port Adelaide to house workers.
Mount Barker, with property going for between $350,000 and $600,000, was labelled as one of the fastest-growing South Australian suburbs according to the report, with new projects in the pipeline by way of a $30 million gas mains pipeline from metropolitan Adelaide by the Australian Gas Network and a $38 million sporting hub expected to see construction start early this year.
Moving closer to the inner ring, the report warned higher-end properties here should also be treated with caution, with prices ranging between $700,000 to the lower end of $1 million.
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