blog

news / 7 Feb 2015

New data shows South Australian units and apartments are the way to go

apartments

 

News Limited

February 07, 2015 12:30AM

LOOKING to invest in South Australian real estate? New data shows SA units and apartments are the way to go.

According to the latest Core Logic RP Data home value index results, Adelaide units are out-performing detached houses for capital growth. Adelaide units have experienced a year-on-year capital growth of 4.5 per cent, up on houses which increased by 2.9 per cent.

According to the report, Adelaide's unit value has grown by 3 per cent for the past month, whereas house values dropped by 1.5 per cent.

Adelaide units' capital growth has risen 0.4 per cent, up 0.1 per cent on houses, and units are also delivering better rental returns than houses - a yield of 4.7 per cent compared with 4.2 per cent for houses.

Both of these figures are higher than the national average of 3.7 per cent for houses and 4.5 per cent for units.

Bernard H Booth Real Estate agent Jamie Brown said Adelaide's apartment complexes, particularly newer developments, should deliver strong capital growth into the future if well located.

“I think if the product is good and the floorplans are good, this growth will continue,” Mr Brown said.

Mr Brown said some SA apartment complexes had experienced significant capital growth - particularly the Baulderstone and Government joint ventures Marina East and Marina Pier at Glenelg.

Sold off the plan in 1997 and completed in 2000, Mr Brown said some of the homes in those complexes had increased almost fourfold.

“Wolf Blass's former apartment cost $1.198 million originally and it just sold for $4 million,” Mr Brown said.

Toop&Toop Real Estate's head of sales and marketing Genevieve Toop said favourable market conditions had made units and apartments hot property.

“With the interest rates being so low and Adelaide's market being so stable, the unit and apartment side is really attractive to investors and first- home buyers,” Ms Toop said.

Peter Faulkner is selling his 46/32 Colley Terrace Glenelg apartment through Jamie Brown and said while Adelaide was slow to embrace apartment living, we were catching up. “The busy business person likes the fact they've got more free time to enjoy life, and the older person embraces the security that apartment living offers.”

Full article here.

 

Recent Articles

/ 1 Nov 2017

/ 27 Oct 2017

/ 15 Sep 2017