- Affordable properties exist in Adelaide's premium suburbs
- Entry-level purchases require strategic sacrifices
- Investment in these areas may offer long-term capital growth
Homebuyers looking to purchase in a premium location within Adelaide may still be able to find affordable pockets, however, they might need to make compromises.
Herron Todd White’s latest Month in Review reveals that the South Australian capital features a host of “champagne locations”, across the city, but buying isn’t always straightforward for those with limited budgets.
HTW Property Valuer, Nick Smerdon said the allure of the blue-chip locations is due to their proximity to the CBD, parklands, retail strips and community facilities.
“An abundance of champagne locations can be found within the inner ring of suburban Adelaide,” said Smeardon.
Adelaide’s most desirable locations
Smerdon said some of the most desirable locations are currently St Peters, Toorak Gardens, and Unley Park. Areas in the western suburbs, particularly Henley Beach, are also seeing significant interest due to their beachside allure and bustling dining and retail precincts.
However, investing in these exclusive areas isn’t always straightforward according to Smeardon.
“To buy at the entry point in these suburbs, purchasers will need to make sacrifices and seek out what other purchasers view as being undesirable.”
Nick Smerdon, HTW Property Valuer
“Properties at the entry price points may be poorly located, provide limited accommodation, have no off-street parking, or may be in poor condition.”
Still affordable
According to Smerdon, it’s still possible to buy cheaply in locations like Toorak Gardens, Unley Park, St Peters and Henley Beach.
Smerdon said a recent sale in St Peters, 84 Stephens Terrace, a modern semi-detached dwelling sold for $1.23 million. He also said a unit at 8/95 First Avenue achieved a sale price of $265,000, suggesting that affordable options are available if buyers are willing to make some concessions.
In Toorak Gardens, Smerdon said a Tudor-style dwelling at 365 Portrush Road sold for $1.2 million. Furthermore, he points out a ground floor cream brick unit at 7/88 Hewitt Avenue, sold for $305,000, as representing an entry-level purchase in this area.
Smerdon said in Unley Park, the sale of a dilapidated 1950s dwelling on 42 Nanthea Terrace for $1.15 million, showcased that even properties requiring significant work can have high value in these sought-after areas.
In the beachside suburb of Henley Beach, the entry price for dwellings was highlighted by the sale of 32a Chambers Street for $992,000. A ground floor cream brick unit at 3/261 Military Road fetched $403,000, signifying the entry point for units in this in demand location.
Invest for the long term
Smerdon said prospective investors should remember the long-term nature of investing in these suburbs.
“Investors looking in these suburbs are typically playing the long game as gross rental yields fall below the accepted four to five per cent found in the middle and outer rings.”
“Buying at the entry-level price point in these suburbs would provide an investor the ability to value add or long-term hold to achieve the benefits of capital growth.
“In the end, a champagne location is in the eye of the beholder.”
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