Written by Brendan Simpkins
Adelaide is a hidden gem.
This is a point that John Edwards, founder of Residex, kept coming back to as he addressed some 50 odd investors gathered at the Crowne Plaza last Tuesday night.
In fact, Edwards was so impressed by what Adelaide has to offer that he is now giving serious consideration to investing in the city.
The housing market across the country is in a state of disarray at the moment as prices – particularly in the more desirable cities such as Sydney and Melbourne – edge upwards and upwards, leaving the average family out in the cold.
With the median house price in Sydney hovering around the million dollar mark and around 40% (estimated by Edwards) of Melbourne’s apartment’s getting snapped up by foreign investors, Edwards predicted that Adelaide would see an increase of young families and retirees crossing the border over the next few years.
Adelaide’s median house price currently sits around $400,000, one of the lowest in the country.
As the state begins to wake from its slumber, more and more high-rise apartment complexes achieve approval for construction.
While that may be great for the skyline of the CBD, it may not be such a wise decision in the long run.
Edwards showed statistics gathered by the ABS, indicating that Adelaide’s population growth is on the decline while construction is on the up.
What he predicts is that some 7000 properties may be left vacant as the market suffers from an over-supply.
For investors that are more prone to taking risks on the housing market, Edwards marked Western Australia – and Perth in particular – as an area that could prove to be a shrewd investment over the coming years.
After all, everything comes in cycles.
Adelaide’s own Arthur Kallos, Director of Sales and Marketing at Investors Direct, kicked off the night by announcing a new product that allows investors to manage their Self Made Super Fund investments as one.
Noticing a gap in the market after Kallos found that investors were moving further away from using financial planners, Investors Direct’s new program has data down to the suburb, giving smart investors a real edge on the market.
Investors Direct will be returning to Adelaide in April of next year to conduct another information session for would-be investors in the property market.
Send your news tips to email@example.com
Brought to you by…