North-East tipped for most significant growth

Adelaide’s northeast has been identified as having SA’s most affordable suburbs tipped for significant capital growth.

According to property research site LocationScore.com.au, Modbury North, Valley View and St Agnes all offer homes priced below $500,000 and are likely to experience strong capital growth in the future.

They each recorded a LocationScore of 74 out of 100 through the website.

To determine a suburb’s LocationScore, (a score out of 100), the site analyses 8 key metrics: days on market, vendor discounting %, auction clearance rates, vacancy rates, rental yields, percentage of stock on the market, percentage of renters to owner-occupiers and online search interest.

LocationScore co-creator and data analyst Jeremy Sheppard said there were a number of reasons why these suburbs were good investment options, but there was one determining factor in all three cases.

“There are enough statistics to say with confidence that demand exceeds supply in these markets,” Mr Sheppard said.

“That means only two things can happen to restore balance – either supply increases to match demand or prices rise to subdue demand.”

Mr Sheppard said the time it takes to sell a house in Modbury North, which has a median of $370,874, had halved over the past two years from 100 days to 50.

This was extremely evident in one of my recent sales in Modbury North, where 52 Zenobia Crescent, a 3 bed 1 bath corner allotment was advertised from $340,000 – $370,000 – received 9 offers and was sold for $381,000 in just 8 days.

52 Zenobia Cres, Modbury North sold for $381,000 in just 8 days after 50+ people attended in 1 weekend

That indicates buyers are not mucking around, but nor are renters as vacancy rates have halved too. In Valley View, which has a $395,576 median, they are some of the lowest in the country at 0.45 per cent, and online searches for properties in St Agnes, which has a $396,368 median, had spiked over the past nine months.

Queenstown (which has a $397,887 median) was the next best performer, with a LocationScore of 73, and other standouts are Ingle Farm in Adelaide’s northeast with a median house price of $336,729.

These three suburbs are sellers’ markets, so buyers do need to move quickly. There is strong demand from buyers yet not enough properties to give them time to be choosy. For these reasons, I expect good capital growth in the immediate future for all these suburbs.

Supplied Editorial Two buses enter the O-Bahn tunnel off Grenfell St in the Adelaide Parklands. Picture: Eugene Bois

The O-Bahn travels to Adelaide’s North-East, where you can find homes for less than $500,000 within a 15 minute commute to the city.

Real Estate Institute of South Australia chief executive officer Greg Troughton said services like LocationScore could be helpful when househunting, but buyers should always do their own research.

“While this sounds very interesting people still need to do their own homework,” Mr Troughton said.

“There is a lot more to it that one solitary omnibus number that basically says this is what a suburb is going to do.”

He said there were still plenty of affordable investment options in South Australia.

“One very simple rule of thumb is if you see a suburb is going gangbusters, and the suburb next door hasn’t reached the peak as yet, that suburb is generally one to watch,” he said.

If you would like to know more specific information about your suburb and it’s future potential, please email me in response section below.

 

 

 

 

Original article: Property research site names SA’s affordable suburbs tipped to grow – Tom Bowden

Leave a Reply

Your email address will not be published.

Get free access to our e-book

Maintaining and Preparing Your Home for Profit

Enter your details below and then download! That simple!
DOWNLOAD NOW
close-link