Thursday, March 19, 2015

Proud and parochial... we are rocking.

South Australia has been recognised again this year as the best marketers in the country. This is not for being spin doctors, but as technology innovators for strategic and sophisticated marketing (communication) systems. 

Genevieve and I were in Perth last weekend for the National Real Estate Awards. After going head to head with the big players in Australia, we were thrilled to bring home the 'biggie', the 2015 National Communications Award. Chatting to agencies and businesses on the night, our unique 'off market' marketing channel, 'The Vault' is generating a lot of interest as it creates significant cost savings for our clients with confidentiality and 'speed to market' capabilities like nothing seen before. It was a great night and our team were extremely proud to be up there representing SA against the best of the best.

Being over in Perth, we did unfortunately miss the last weekend of the Fringe Festival. We were there for four days and what a beautiful city – there are stunning beaches everywhere you look. But I have to say, I did miss the buzz of Adelaide.

Think about the other goals we South Australians are currently kicking. With record numbers of over two million people, the Adelaide Festivals have lived up to their reputation again this year, with a 20% increase in attendance. This energy has clearly been infectious, as people are out and about everywhere. It's not just limited to Mad March now, there are more and more pop up bars and restaurants appearing across the CBD throughout the year.

Living and working on the fringe of the city in Norwood, I must admit, I don't get into the city as often as I would like but when I do, there are so many new places to go. With the new planning and liquor licencing laws that were introduced in 2013, the city of Adelaide is constantly changing. These days it's not uncommon for people to keep a running list of 'must visit' Adelaide restaurants and bars, as we don't want to forget restaurant recommendations made by friends and family.  

So I'm thinking, what impact is all this activity having on housing prices in the city and what yields can investors expect to see now in the 'new look' CBD? 

When comparing the city to the eastern suburbs, property is still very affordable with a median unit price of $385,000. Investors buying a 3 bedroom unit in this price bracket will achieve a rental price of around $450 per week! The yields are extremely strong and the affordability of the CBD market creates great opportunities for investors. 

Whilst we are starting to see a few new developments pop up across the city, the potential to jeopardise these returns with over supply is not to the extent 
as seen in Sydney and Melbourne due to our thorough planning regulations in the CBD.

According to an article in Property Investor Magazine, the SA Deputy Premier has noted the initiatives underway could increase the population in the CBD from the current 22,000 to 50,000 residents. With 69% of renters already living in the city, this would create further demand. And it makes sense... Tenants are quite happy (and actually enjoy) a short walk into work and we are finding they are loving the flexibility of being able to leave the car at home as they run errands or catch up with friends.

This is reflected in what our team are seeing, as they are receiving over twice as many quality rental applications for the CBD than two years ago. This clearly shows that there is a trend towards tenants moving back into the city to live as they want to enjoy the buzz and excitement that is around the place and also the convenience. 

So if you are looking to invest, keep an eye on all the developments happening across the Adelaide city. It's not just Mad March anymore; Adelaide CBD is becoming a permanent hot spot for renters. 

Team Toop are passionate about how good our hometown is, and it's with good reason: We love this place.  

Suzannah Toop

No comments: