The Adelaide property market is performing spectacularly, according to the CEO of a local property investment company.
Total Investment Property Solutions (TIPS) CEO Fred Rasheed (pictured) said it didn’t matter which Adelaide suburb you were searching for a new home in at the moment, it was rare to find a suburb which had not increased in price by a 10% minimum in the past 12 months.
“We can hardly keep up with it, prices are changing on a monthly basis,” Rasheed said.
“People are doing anything they can to secure a property. At the moment we have five people looking for every one property available.”
Rasheed said for the last five properties he had purchased for clients, he would have paid $30,000 to $40,000 more than what he thought it was worth.
“Once a client finds a house they like in this market, they will pay whatever they need to secure it,” he said.
Rasheed said there was an increase in interstate buyers snapping up properties in South Australia, with the majority of them paying a premium price or overbidding.
“They are coming here with Sydney and Melbourne prices in mind,” he said.
“Interstate buyers are realising they can buy cheaper in Adelaide with more value for money. Meanwhile SA locals are shaking their heads at the prices they are paying.”
Rasheed’s advice to South Australian brokers was to look at a client’s budget, find out the maximum they can afford to borrow and set that as a fixed dollar value.
“I say to my clients they need to sit down with a broker and obtain their pre-approval,” he said.
“I also say talk to your broker about ascertaining as little ‘subject to’ conditions as possible. With vendors receiving so many well-priced offers in this market, buyers need to differentiate themselves from the competition.”
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Rasheed said regional areas of South Australia had also experienced price growth in recent months.
“Holiday locations around the state have increased in popularity as people haven’t been able to travel in so long,” he said.
“We have some of the best beaches in the world and people are buying or renovating properties in these magnificent areas, which is value adding to regional South Australia.”
Rasheed said it was a mixture of free-standing houses, villas, and units his investor clients were purchasing.
“With interest rates starting to rise and prices showing no signs of slowing, my first home buyer clients are desperate to buy into the market,” he said.
“Meanwhile, my second home buyer clients think now is a great time to upgrade as they have built equity in their existing home, and it has uplifted in value which they can use as a deposit to buy a larger or newer property.”
Rasheed said a large problem he faced for his clients was that real estate agents no longer put prices on their advertised listings.
“You are lucky to have a price range on a listing these days,” he said.
“The industry is getting a bit ridiculous with some agents just doing it for the glory to break records of attendance at auctions. It is happening all the time and I think agents needs to be reined back in and advertise realistic prices.”
