Adelaide’s property market was much like a jigsaw puzzle this past quarter; it fit together but required a lot of effort to do so. With a bottle neck effect brought about by the incredibly low stock levels that were 13% lower than the same equivalent month to month from what was already a low level last year, there was very little stock to offer. This created a dilemma for vendors who had made the decision to sell yet couldn’t find anywhere to buy, and were therefore reluctant to commit without any surety of somewhere to go. This developing trend of the need to sell as well as buy will likely continue moving forward. From a Buyers Agent perspective, this presents the opportunity to put our skills to work with the added sales advisory role. Though may create a catch 22 in this market of low stock levels. For this quarter, this placed clients who did not have to sell to buy in a good position competitively on terms, with a clean and streamlined offer and contract process.
The primary difference between this third quarter and last years was the swing in poor quality or compromised assets selling well due to the FOMO effect of the bull market to grinding to a complete halt. While interest rates certainly created uncertainty in buyer sentiment, they did not have the same dramatic effect as was felt by the Sydney/Melbourne market. With a less developed growth cycle, our market still showed a capacity to absorb interest rates and remain competitively affordable.
The complexities of this current market meant that the only properties to perform well fell into a very narrow category of good quality, nothing compromised, ready to move into, doesn’t need any work. Simple, clean. With building and labour costs unstable, demand was high for already renovated or extended properties. This meant that there was, and is looking ahead, value to be found for homebuyers willing to compromise on the condition of the property until renovations costs become more realistic. This is particularly opportune for investors not looking to live in, rather to hold as is for the unseeable future, with only minor cosmetic adjustments to lease to tenants.
- Charles Sturt
- City of Prospect
- Port Adelaide/Enfield
Situated west of Adelaide’s CBD, Charles Sturt literally stretches from the city to the sea. It is the easy access to the beach, CBD, airport and other facilities that appeals to its 120k strong population with a median age of 41. There were 455 sales transacted during this quarter, up 4.6% since the same quarter last year. The three month median price was $820k, and the 12 month $817.5k. Average days on market within West Croydon was 40 days, a drop of only two from 2021’s third quarter. Total listings reduced by 10%, with 7 properties on the market for over 180 days, a minimal change from 6 properties 12 months prior. West Croydon held a higher median price, sitting at $959k.
The standout sale for the Charles Sturt area this quarter was located at 54 Henry Street in West Croydon, which sold in June 2021 for $926k after 79 days on market. With no improvements, it was placed back on the market for 61 days through Thomas Crawford at Toop & Toop, and sold for $1.02m.
The inner urban community of City of Prospect, well located immediately north of the City of Adelaide, offers contemporary townhouses, million-dollar mansions, bungalows, high-rise apartments, and spacious homes. With 57 sales this past quarter, a change in sales volume from last quarter of +0.8%, it held a median price of $1.027m for three months, and $1.1m for 12 months. Average days on market dropped 2 from last year to sit at 42, and total listings fell significantly by 20%. There were 13 properties on the market for over 10 days, down from 27 for the same time last year.
Achieving a record sales price for the street, 15 Koonga Avenue sold at auction through Marina Ormsby at Fox Real Estate for $1.3025m.
Just 40 minutes from the city, with easy access to the coastline and beach lifestyle, Port Adelaide is well positioned in Adelaide’s inner north west. South Australia’s first state heritage area, it contains the most substantial and continuous group of colonial buildings, many of which were directly associated with its primary function as the state’s major port.
This quarter saw a total of 533 in sales volume in the area, an increase of 8.6% from the third quarter last year. The three month median price stood at $685k, with the 12 month median at $640k.
Continuing the comparison between this quarter to the same quarter last year, Semaphore saw an average of 42 days on market, a decrease from 46 days. There were two properties on the market for more than 180 days, a minimal increase from one the previous year. Total listings rose 17%.
In a record sales price for Semaphore, 23 Penny Street sold at auction by Kate Smith from Harcourts Smith for $1.8m.
The developing trend of both buying and selling in unison will likely continue throughout the next quarter. With no clear spring uptick in the listings in regards to volume, low stock levels will keep comparative demand high, which will in turn keep prices on the up. Expect to see prices remain steady if not still growing for good quality assets.
Get in touch with Sharon to find out more about the Adelaide property market, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.Read more about Sharon Taylor
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