Homeowners in some of Adelaide’s inner city fringe suburbs are sitting on property gold mines, with prices climbing more than 3 per cent every year over the past decade.
New research by the Property Investment Professionals of Australia (PIPA) and CoreLogic show Prospect was South Australia’s best performing suburb over the past 10 years.
House values increased by an average of 3.4 per cent each year over the past decade to a $751,346 median.
North Adelaide, which recorded an average of 3.3 per cent to a median value of $989,911, and Nailsworth and Broadview, which the report counted together with an average of 3.2 per cent growth to a $708,291 median, trailed closely behind.
Schools catchments, including the new Adelaide Botanic High School and Adelaide High School, also attracted house hunters, Mr McIntosh said.
“People have been specifically waiting to buy to get into those suburbs to get into school zones,” he said.
Mr McIntosh said changes to Prospect Rd over the past decade has also made the area more appealing.
“Prospect Council changing the dynamic of Prospect Rd has been huge,” he said.
“It’s becoming quite a stylish and attractive suburb.
“Over the decade, it’s gone through a regeneration.”
“I think Prospect primarily has been because of the amount of infrastructure that’s come to the area,” he said.
“It’s a pretty cool suburb, it has a real community atmosphere.”
He said the council had done a lot of work to revitalise the area.
“You’d be hard pressed to find vacant (commercial) spaces,” he said.
PIPA chairman Peter Koulizos said Adelaide was one of the markets where some of its smaller locations were outperforming the city as a whole.
“Even though Adelaide only recorded average annual growth of 1.5 per cent over the past decade, its top performing location of Prospect saw prices increase by 3.4 per a year over the period,” Mr Koulizos said.
Adelaide’s growth wasn’t as high as Melbourne and Sydney, which rose by an average of 5.5 per cent and 4.9 per cent respectively, but Mr Koulizos said it was much steadier.
“Annual growth of between 1.3 per cent to 2.8 per cent over the past decade is part of the reason why so many investors and property investment experts are eyeing Brisbane, Adelaide and Canberra as potentially having the best capital growth prospects over the next 10-year period,” he said.
Jessica Brown, realestate.com.au, 5 March 2020
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