Adelaide is still the cheapest Australian mainland capital city with a median price of $362,000. Adelaide also has the cheapest rents in the country.
Adelaide’s period housing is very distinctive. Most are period homes constructed out of stone due to the shortage of timber in the mid 1800’s to early 1900’s.
As mentioned yesterday, Adelaide has an easy to navigate grid layout with the water/ airport to the city centre’s West. Adelaide Hills to its East. Most of the cities sprawl runs South/ North.
For anyone who has followed this blog for some time, you might realize we stick to a few golden rules when buying real estate:
Buy close to city centres, lifestyle focused, amenity rich and property that have a ‘scarcity’ factor. A Victorian period home is a great example, these cannot be rebuilt. Another example would be an inner city apartment in a boutique block with never to be built out views.
The opportunity: Go West
The western suburbs of Adelaide are comparable to Melbourne’s inner Western suburbs such as Yarraville, Seddon etc. One difference is the proximity to the city, Adelaide’s West sits right on the edge of the CBD and has much easier access.
The state government is putting an enormous amount of money into this part of Adelaide. The recent budget caused a sensation in Adelaide with the massive allocation of funds to two very important projects.
1. The extension of the cities tram network. The tram which did not go through the West will now be extended from the city centre all the way through to Port Adelaide. This for those who are unfamiliar passes all the way through Adelaide’s western suburbs.
2. The massive overhaul of the Adelaide convention centre. The West is poised to become the businessperson’s companion with this massive overhaul.
Further to the Beach also sits the cities airport. It’s important not to be right next-door however its proximity is a massive benefit. For example some of the big mining companies are planning on housing their workers in Adelaide and flying them out to their locations rather than simply staying in remote communities.
Proximity to the airport will be key for these workers and for instance people who are in business and travel a fair amount.
The property pictured above is in a suburb called Mile End. It’s a semi detached period stone home. A real charmer. This sold for an undisclosed sum in the low 400’k. It was on 420 sm2 of land, which is very large for a single fronted property. The deception is that the block is almost 50 Metres deep. Tree lined street and beautifully close to the CBD. To view the map of the location, click here .
The closest main road is Henley Beach Road. This is a strip starting to emerge.
The other beauty of this property was the car access at the rear. At an estimate the width was about 7 Metres and had subdivision potential. The subdivision of blocks is only really a recent event in Adelaide. A property that presents options, presents good capital growth!
Entry point property is very affordable. For Mid $300k you can purchase a double fronted property in Croydon on good land, which is up, and coming. Little funky trendy coffee shops are just starting to pop up and the new tramline will service this suburb.
Single fronted property is still obtainable in the high 200’s – 300k mark, these however will often not be updated or on the smaller side.
North Adelaide:The crème of the crème. (The suburb itself) sits elevated above the city itself. The unique thing about the spot is the fact that it is placed within the parkland district the surrounds the CBD, see map.
This is where the Adelaide oval is situated. From a pricing end, expect plenty. This position uses the full ‘scarcity’ effect at its best. The suburb is as close as you can get yet isolated at the same time in a good way. Buying real estate here you could not expect to go wrong; the area is however very established unlike the West.
Good townhouses can be obtained in the high 400’s in North Adelaide.
Prospect, which is an inner Northern suburb (Note: North Adelaide is a suburb itself which is very small on the CBD. Think Albert Park of Adelaide) A period house can be purchased for $400,000 and then moving up. Prospect still has good growth possibilities moving forward.
The inner suburbs of Adelaide are great options; you just have to be careful about moving too far north.
Tomorrow I’ll cover the city centre, the inner East, Coastal and South.
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