03 Sep Adelaide ripe for investment
V Three Real Estate’s Senior Property Partner, Steve Meins, sees the silver lining to COVID-19 being the increasing popularity of the Adelaide real estate market for interstate buyers.
“I think Adelaide will be a destination for interstate people who may have looked at us and seen how we’ve dealt with COVID,” he says. “We are the state to be in – we are going to have a strong bounce back.”
The Advertiser real estate editor, Tom Bowden, says Adelaide’s relative stability in real estate has always made it popular with investors, especially compared with volatile markets like those in the eastern states.
“In Melbourne and Sydney, throughout the course of a year you’ll get great fluctuations of value growth and loss, whereas here in SA it’s always been steady as she goes, with no huge leaps of value growth but incrementally positive value growth.
“It’s always seen us favoured by investors because they see it as a safe option – with real estate being a long game.”
Strongly performing suburbs close to the city are usually popular with investors. “From a value growth point of view, and an investment point of view, they’ve always been traditionally strong performing pockets of the city,” Bowden says.
The Adelaide Hills is another likely investor target and a popular place for interstate people looking for a bargain.
“The Adelaide Hills has surged over the past 10 years to the point where if you go up to Stirling on the weekend, it’s busy, if not busier, than most city suburbs,” he says. “It’s only 20 minutes up the road. Real estate up there can be seen as massively undervalued. Interstate buyers see that you can buy a large block at Stirling and pay less than a million dollars for it. You couldn’t do that in Sydney or Melbourne.”