Home Market Insights Suburbs set to boom in 2017

Suburbs set to boom in 2017

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In terms of value for money, location can be the determining factor when it comes to property investment.

We’ve asked some of Adelaide’s real estate experts what they consider will be the ‘boom’ suburbs of 2017.

Southern suburbs

Jayne Corless from Selling SA has noticed heightened activity in Port Noarlunga and Christies Beach.

“The existing infrastructure is now supported by the Southern Expressway running in both directions,” she said.

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“We are starting to see an increase in clients from the North wanting to take advantage of these coastal locations, simply because they are now more accessible.”

Ms Corless states that properties are selling quickly, providing the price is right.

“Buyers have a lot of information available to them through the internet.

“They can research areas, properties and make comparisons, they are more educated about what constitutes value.”

Attendance to open inspections has increased, some properties producing an inundation of inquiries.

Development is also lively.

“With the area being quite old, we are seeing plenty of knockdown/rebuilds. This is positive for any area from a value perspective,” Ms. Corless said.

Investors are featuring strongly in the buyer’s pool, possibly taking advantage of the market before changes to Negative Gearing take effect in July this year.

Eastern suburbs

Bevan Bruse from Bruse Real Estate is seeing a band of new development stretching from Magill in the East through to Rostrevor in the North East.

Campbelltown, Newton, Hectorville and Paradise complete the group where redevelopment has taken off in recent months, producing excellent results that are expected to continue.

“Most of these properties are selling off the plan or right at the point of completion.

“The prices have leveled out but they are what you would expect for the area. It’s still a great location,” Mr Bruse said.

The Electronic Land Division Lodgement site (edala.sa.gov.au) shows nine applications for sub-division have been submitted in 2017 for an additional sixteen properties.

“We could see land prices increase in the area but it does depend on the last sale,” Mr Bruse added.

This outcome seems likely after sourcable.net recently reported an increase of 12.4% in Adelaide’s land prices over the last year.

Northern Suburbs

In the North, Ryan Smith from Smith Partners has noticed a surge of interest in Golden Grove.

“We are having phenomenal numbers through the door at open inspections, unlike what we’ve seen previously.

“In some cases, this has pushed the price up $20-$30,000 more than expected, just through competition.”

It’s hard not to see why.

The suburb already boasts an excellent range of facilities and services, plus the opportunity for added value.

“Buyers are looking for convenience and more bang for their buck.

“They know if they drive ten minutes further out of the city, they’ll be getting better value for money in their property,” Smith said.

According to yourpropertyinvestmentmag.com.au, the DSR score (demand to supply ratio) for Golden Grove indicates a healthy market for investors.

Demand is slightly higher than supply, leaving little time for buyers to be choosy.

As Mr. Smith indicates, sellers are getting the prices they ask for, in some cases more than expected – a definite reason why Golden Grove should show positive results in 2017.

Western suburbs

Jarrod Van Hassteren from the REAL Estate Agents Group believes suburbs such as Glanville and Ethelton could be the ones to watch in the West.

“These two small suburbs border Semaphore.

“Properties are still very close to the esplanade but without the high price tag.

“The same house in Ethelton can be up to $150,000 more expensive, less than two kilometres down the road.”

According to realestate.com.au, Ethelton currently averages 1100 online views per property – well above the South Australian average of 603 and only slightly behind Semaphore at 1295.

He also sites Burton and Paralowie as possible boom areas.

“These suburbs seem to be four or five years behind surrounding areas as far as redevelopment goes,” he said.

“They’re just starting to catch up now and have been more sought after than neighbouring Salisbury North.”

City & Beyond

The city-fringe suburb of Bowden has undergone extensive development in the last twelve months.

Since June 2016, 173 new dwellings have been built with applications for 85 more already approved this year (edala.com.au).

Close to the heart of the city as well as major sporting and entertainment venues, Bowden is an attractive location for both investors and those looking for a smaller, more convenient way of living in an environmentally sustainable, innovatively designed environment.

Tea Tree Gully Council’s Annual Business Plan (teatreegully.sa.gov.au) outlines rezoning and plans for future development of vacant land in Modbury.

A diverse range of housing built to suit a variety of needs, lifestyles and life stages is expected.

Along with upgrades to Tea Tree Plaza and surrounding facilities, the new residential areas will be unique in character and identity.

Watch for future marketing campaigns for what is set to be a popular and valuable area in the future.

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