1 00:00:01,760 --> 00:00:03,279 Speaker 1: Reached against. Welcome to Property Insights. 2 00:00:03,320 --> 00:00:05,720 Speaker 2: Mate, thank you, appreciate you having me. 3 00:00:06,240 --> 00:00:07,040 Speaker 1: Thank you man. 4 00:00:07,080 --> 00:00:10,600 Speaker 3: You're coming from one of those great places in Australia 5 00:00:10,760 --> 00:00:14,640 Speaker 3: that's on fire. It's your principal at Bell Property Group 6 00:00:15,080 --> 00:00:19,600 Speaker 3: in Glenelg in South Astralia. Yep, Mate, our branches over 7 00:00:19,640 --> 00:00:21,599 Speaker 3: there telling me, well, I know they are, because some 8 00:00:21,640 --> 00:00:25,000 Speaker 3: of our branches South Stralia just killing it. 9 00:00:26,360 --> 00:00:29,760 Speaker 1: You guys are just on fire. What's the deal? 10 00:00:29,840 --> 00:00:33,240 Speaker 2: Why? Why? Why? Why? It's been a great market. We've 11 00:00:33,280 --> 00:00:36,199 Speaker 2: been very lucky here in Adelaide, probably since mid to 12 00:00:36,280 --> 00:00:41,200 Speaker 2: late twenty twenty. We've seen consistent and very strong growth 13 00:00:41,800 --> 00:00:43,040 Speaker 2: throughout our whole market. 14 00:00:43,760 --> 00:00:47,559 Speaker 3: Growth in the prices or growth in turnover? Few what 15 00:00:47,600 --> 00:00:48,040 Speaker 3: do you main? 16 00:00:48,920 --> 00:00:53,800 Speaker 2: Definitely pricing turnover has probably, I mean, we're lucky where 17 00:00:53,800 --> 00:00:57,040 Speaker 2: we are. There's enough turnover in the coastal market. However, 18 00:00:57,120 --> 00:00:59,320 Speaker 2: I think if you asked a buyer out there in 19 00:00:59,360 --> 00:01:03,040 Speaker 2: Adelaide just the supply is low and they'd be correct 20 00:01:03,200 --> 00:01:05,920 Speaker 2: because we're pretty close on thirty percent down on that. 21 00:01:06,880 --> 00:01:10,839 Speaker 2: But our property prices have been amongst the best performed 22 00:01:10,880 --> 00:01:11,440 Speaker 2: in the country. 23 00:01:12,000 --> 00:01:14,600 Speaker 3: Well, I think actually they are the best performing in 24 00:01:14,640 --> 00:01:17,479 Speaker 3: the country. But to some extent rice you come off 25 00:01:17,520 --> 00:01:22,319 Speaker 3: a low base, so you were you could if I 26 00:01:22,360 --> 00:01:25,679 Speaker 3: work an Adelaide, I'm just making our scenario and I'm 27 00:01:25,720 --> 00:01:27,440 Speaker 3: in the IT game. I get paid the same amount 28 00:01:27,480 --> 00:01:29,160 Speaker 3: of money in Adelaide as I would if I got 29 00:01:29,319 --> 00:01:31,440 Speaker 3: if I was in the IT game in Sydney. So 30 00:01:31,560 --> 00:01:36,880 Speaker 3: my income relatively speaking, is neutral. But the purchase price 31 00:01:36,920 --> 00:01:40,120 Speaker 3: of a house, because there's not a lot of units 32 00:01:40,160 --> 00:01:45,040 Speaker 3: there a house in Adelaide at one stage one stage 33 00:01:45,360 --> 00:01:49,920 Speaker 3: was like six fifty zer so yes, so my borrowing 34 00:01:49,960 --> 00:01:53,960 Speaker 3: capacity was quite high relative to what it would be 35 00:01:54,040 --> 00:01:56,600 Speaker 3: in Sydney and Melbourne. And therefore just made sense that 36 00:01:57,360 --> 00:01:59,040 Speaker 3: I could move to Adelaide and do my same job 37 00:01:59,040 --> 00:02:01,760 Speaker 3: in Adelaide, or turn it, moved to Outlaid and get 38 00:02:01,760 --> 00:02:04,440 Speaker 3: another job similar to set a job in Adelaide, or alternatively, 39 00:02:04,480 --> 00:02:08,040 Speaker 3: I'm sitting just buying Adelaide and invest in Adelaide. What 40 00:02:08,080 --> 00:02:11,880 Speaker 3: are you seeing in terms of buyer profiles now? 41 00:02:12,600 --> 00:02:15,120 Speaker 2: And I mean we've seen a combination of all of 42 00:02:15,120 --> 00:02:18,320 Speaker 2: that over the past couple of years, and I think 43 00:02:18,360 --> 00:02:21,239 Speaker 2: that was probably the initial attraction to the Adelaide market. 44 00:02:21,320 --> 00:02:25,320 Speaker 2: It was seen as value for money in terms of 45 00:02:25,639 --> 00:02:28,919 Speaker 2: lifestyle into even from an own occupier's point of view, 46 00:02:29,000 --> 00:02:31,280 Speaker 2: and then from an investor's point of view, it was 47 00:02:31,320 --> 00:02:34,160 Speaker 2: also seen as value for money with our rental yields 48 00:02:34,560 --> 00:02:37,440 Speaker 2: and our extremely low vacancy rates as well. So I 49 00:02:37,480 --> 00:02:39,240 Speaker 2: think we had the best at both worlds. We had 50 00:02:39,280 --> 00:02:42,520 Speaker 2: own occupiers looking for lifestyle, we had investors who were 51 00:02:42,720 --> 00:02:45,200 Speaker 2: pretty happy with the numbers that the market was putting out, 52 00:02:45,880 --> 00:02:49,799 Speaker 2: and that seemed to coincide with low supply in our market. 53 00:02:49,960 --> 00:02:54,440 Speaker 2: So the demand grew, the supply was dropping, therefore competition 54 00:02:54,639 --> 00:02:57,799 Speaker 2: and therefore the price growth that we've seen, which I 55 00:02:57,800 --> 00:03:00,760 Speaker 2: think is pretty close on seventy four percent since COVID, 56 00:03:00,840 --> 00:03:02,360 Speaker 2: so since that twenty twenty period. 57 00:03:03,040 --> 00:03:08,400 Speaker 3: So I sen to recall that pre pre you know, 58 00:03:09,200 --> 00:03:13,000 Speaker 3: everybody buying over there, Adelaide actually probably had one of 59 00:03:13,000 --> 00:03:14,840 Speaker 3: the apart from Canberra, probably had one of the lowest 60 00:03:14,880 --> 00:03:16,680 Speaker 3: vacancy rates anyway. 61 00:03:17,760 --> 00:03:18,520 Speaker 1: In the rentals. 62 00:03:19,240 --> 00:03:21,320 Speaker 3: And I've never been able to get to the bottom 63 00:03:21,320 --> 00:03:22,760 Speaker 3: of that. I've never really asked anybody. 64 00:03:24,520 --> 00:03:26,799 Speaker 1: Is that because people. 65 00:03:26,520 --> 00:03:28,680 Speaker 3: Moving to Adelaide were moving at a great rate than 66 00:03:28,800 --> 00:03:31,920 Speaker 3: your housing supply was increasing or is there something about Adelaide? 67 00:03:33,080 --> 00:03:37,040 Speaker 3: And I'm including the broader part of Adelaide, like generally 68 00:03:37,080 --> 00:03:39,920 Speaker 3: south straight for that matter. Is it because that there's 69 00:03:40,920 --> 00:03:44,600 Speaker 3: green bands or boundaries that you can't build outside of, 70 00:03:44,760 --> 00:03:49,560 Speaker 3: or you know, it's like it's a constraint, a structural constraint. 71 00:03:50,760 --> 00:03:54,160 Speaker 2: There has been, so there has been areas and especially 72 00:03:54,280 --> 00:03:57,640 Speaker 2: sort of our city fringe east of the city, southeast 73 00:03:57,640 --> 00:04:00,800 Speaker 2: of the city, that have had some pretty strict guidelines 74 00:04:00,840 --> 00:04:04,800 Speaker 2: in place and council restrictions on subdivisions, how big your 75 00:04:04,800 --> 00:04:08,520 Speaker 2: allotments need to be and that type of thing. We 76 00:04:08,560 --> 00:04:12,160 Speaker 2: do see our western suburbs and our coastal markets being 77 00:04:12,200 --> 00:04:15,800 Speaker 2: much more flexible with that development space. And I think 78 00:04:16,040 --> 00:04:18,280 Speaker 2: if you if you did a bit of a broad snapshot, 79 00:04:18,279 --> 00:04:20,360 Speaker 2: you'd sort of see that the amount of development that's 80 00:04:20,400 --> 00:04:23,360 Speaker 2: going on in our coastal suburbs and through the western 81 00:04:23,400 --> 00:04:27,160 Speaker 2: suburbs further south, further north, when comparing it to that 82 00:04:27,160 --> 00:04:30,320 Speaker 2: city fringe, you'll see a lot more dwellings being built 83 00:04:30,760 --> 00:04:33,040 Speaker 2: than what you are around there. So I think because 84 00:04:33,080 --> 00:04:35,600 Speaker 2: of that, we have seen a lot of people moving 85 00:04:35,600 --> 00:04:39,400 Speaker 2: towards our coastal market because there is availability and the 86 00:04:39,440 --> 00:04:41,880 Speaker 2: prices in the east and the prices in the southeast 87 00:04:41,960 --> 00:04:46,400 Speaker 2: of Adelaide continue to grow at probably a slightly more 88 00:04:46,480 --> 00:04:48,040 Speaker 2: rapid rate than what we do around here. 89 00:04:48,440 --> 00:04:51,200 Speaker 3: So where's hot now? So in Adelaide in terms I 90 00:04:51,200 --> 00:04:52,760 Speaker 3: don't mean terms of whether, but I mean in terms 91 00:04:52,760 --> 00:04:57,479 Speaker 3: of where's everybody sort of there's the obvious areas, like 92 00:04:57,520 --> 00:05:00,520 Speaker 3: the very expensive areas, but yeah, sort of what's new, 93 00:05:00,920 --> 00:05:03,760 Speaker 3: like what's trending where people are starting to say that 94 00:05:03,839 --> 00:05:05,960 Speaker 3: I've got to I should buy there for investors and 95 00:05:06,040 --> 00:05:07,119 Speaker 3: own and rocks. 96 00:05:07,560 --> 00:05:09,800 Speaker 2: Well, I think I mean from an investment point of view, 97 00:05:09,839 --> 00:05:14,440 Speaker 2: they're actually getting better value for money and better return 98 00:05:14,760 --> 00:05:17,080 Speaker 2: in the form of rental yields the further north and 99 00:05:17,120 --> 00:05:20,479 Speaker 2: the further south that they go. So we're finding that 100 00:05:20,560 --> 00:05:24,840 Speaker 2: those suburbs through Adelaide is still very affordable and what 101 00:05:24,839 --> 00:05:27,720 Speaker 2: we're finding that's probably where the investors are choosing to buy. 102 00:05:28,480 --> 00:05:30,120 Speaker 2: Rental yields are up to six to seven. 103 00:05:29,920 --> 00:05:31,960 Speaker 1: Percent as you're talking about. 104 00:05:32,680 --> 00:05:36,360 Speaker 2: So for go north, we're talking Elizabeth, we're talking Salisbury. 105 00:05:36,560 --> 00:05:40,839 Speaker 2: So without offending anybody, they're not necessarily on everybody's shopping 106 00:05:40,880 --> 00:05:44,560 Speaker 2: list here in Adelaide, but for an investor they certainly 107 00:05:44,560 --> 00:05:48,800 Speaker 2: will be. And further south, beach side suburbs like Port 108 00:05:48,839 --> 00:05:52,560 Speaker 2: No Lunga as far as Ldinger Beach have seen some 109 00:05:52,600 --> 00:05:55,880 Speaker 2: serious growth and do still see some serious rental yields. 110 00:05:55,920 --> 00:05:59,159 Speaker 2: So when you hear in Adelade, when you sort of 111 00:05:59,200 --> 00:06:01,760 Speaker 2: come back to the I guess the more blue chip suburbs, 112 00:06:01,800 --> 00:06:04,400 Speaker 2: whether that's coastal real estate or city fringe real estate, 113 00:06:04,839 --> 00:06:07,920 Speaker 2: we do find that the houses especially are dominated by 114 00:06:08,080 --> 00:06:12,560 Speaker 2: own occupiers. So what that means when we're selling properties, 115 00:06:12,600 --> 00:06:14,560 Speaker 2: when people are trying to buy it, the competition is 116 00:06:14,640 --> 00:06:18,919 Speaker 2: very high and the competition is very emotional. So often 117 00:06:18,960 --> 00:06:21,440 Speaker 2: for an investor, it just doesn't make sense to enter 118 00:06:21,480 --> 00:06:25,160 Speaker 2: those blue chip suburbs for a straight investment unless they 119 00:06:25,160 --> 00:06:27,880 Speaker 2: have an ulterior reason which you move into it down 120 00:06:27,920 --> 00:06:30,840 Speaker 2: the track or maybe develop it down the track. They're 121 00:06:30,880 --> 00:06:33,920 Speaker 2: more suited to something outside of the blue chip suburbs, 122 00:06:35,080 --> 00:06:39,039 Speaker 2: whereas you owner occupiers we've probably got. Depending on which 123 00:06:39,080 --> 00:06:42,320 Speaker 2: agent you speak to, they may disagree, but I would 124 00:06:42,360 --> 00:06:46,159 Speaker 2: say our coastal market has been extremely hot over this 125 00:06:46,320 --> 00:06:49,880 Speaker 2: last two to three year period. People are getting lifestyle 126 00:06:51,080 --> 00:06:53,200 Speaker 2: a little bit more than probably what they get on 127 00:06:53,240 --> 00:06:55,159 Speaker 2: the city fringe. And if you look at an area 128 00:06:55,200 --> 00:06:57,479 Speaker 2: like Leonel where we of course to a lot of work. 129 00:06:57,839 --> 00:07:01,120 Speaker 2: You've got direct connection through the tram, so you can 130 00:07:01,200 --> 00:07:03,799 Speaker 2: jump on the tram here in Glenelg and within fifteen 131 00:07:03,800 --> 00:07:06,000 Speaker 2: to twenty minutes tops you're in the middle of our 132 00:07:06,040 --> 00:07:08,000 Speaker 2: CBD and vice versa. 133 00:07:09,200 --> 00:07:14,840 Speaker 3: So what do you consider when you say good yields 134 00:07:14,920 --> 00:07:17,120 Speaker 3: rental yields? I'm talking about what do you consider a 135 00:07:17,120 --> 00:07:18,800 Speaker 3: good yeard? Are we talking about like four and a 136 00:07:18,840 --> 00:07:20,600 Speaker 3: half percent? What are you thinking about? 137 00:07:21,280 --> 00:07:23,480 Speaker 2: So four, I'd say in Adelaide, three and a half 138 00:07:23,520 --> 00:07:26,720 Speaker 2: to four would be our standard. And in those blue 139 00:07:26,760 --> 00:07:29,520 Speaker 2: chip suburbs that's what you're getting. However, when you go 140 00:07:29,720 --> 00:07:32,160 Speaker 2: those to those further north and south suburbs, they're getting 141 00:07:32,200 --> 00:07:34,440 Speaker 2: up to seven eight percent. Wow out there. 142 00:07:34,640 --> 00:07:37,440 Speaker 3: Yeah, so that you could sort of you're borrowed the 143 00:07:37,520 --> 00:07:40,640 Speaker 3: right amount of money, assuming a borrowing hundred percent, well 144 00:07:40,680 --> 00:07:44,360 Speaker 3: even then you could probably get a positive gearing out 145 00:07:44,400 --> 00:07:44,600 Speaker 3: of it. 146 00:07:44,600 --> 00:07:45,920 Speaker 1: You'd be positive for the year that. 147 00:07:46,120 --> 00:07:48,320 Speaker 2: Right, you'd go very close as long as you're putting 148 00:07:48,320 --> 00:07:52,280 Speaker 2: down your twenty percent deposit for sure. Why is it? 149 00:07:52,320 --> 00:07:53,160 Speaker 1: Why is it so high? 150 00:07:53,240 --> 00:07:53,320 Speaker 3: Like? 151 00:07:53,440 --> 00:07:55,480 Speaker 1: Is it because there's just nothing available to rent? 152 00:07:56,760 --> 00:08:01,280 Speaker 2: There are demographics wise, there's more people renting in those suburbs, 153 00:08:01,320 --> 00:08:06,080 Speaker 2: then there are owner occupying so the prices therefore for 154 00:08:06,120 --> 00:08:09,640 Speaker 2: the actual purchase a dwelling are not as competitive, but 155 00:08:10,200 --> 00:08:12,720 Speaker 2: the prices to rent the dwellings are very competitive. So 156 00:08:13,720 --> 00:08:17,080 Speaker 2: we've even seen scenarios where you know, there are people 157 00:08:17,560 --> 00:08:19,920 Speaker 2: looking for a rental who will offer more as if 158 00:08:19,960 --> 00:08:22,400 Speaker 2: they're almost in an auction campaign or a beast of 159 00:08:22,440 --> 00:08:26,920 Speaker 2: a buy campaign to make sure they secure something. But yeah, 160 00:08:26,920 --> 00:08:28,040 Speaker 2: it's definitely a supplying to man. 161 00:08:28,480 --> 00:08:30,640 Speaker 3: It's very interesting because you get people over here in 162 00:08:30,680 --> 00:08:32,120 Speaker 3: Sydney saying I will never be able to get in 163 00:08:32,160 --> 00:08:34,439 Speaker 3: the property market and they're talking about, you know, buying 164 00:08:34,440 --> 00:08:36,840 Speaker 3: next toward next door to where they grow up, which 165 00:08:36,960 --> 00:08:40,520 Speaker 3: makes sense, but that I keep saying, well, buy where 166 00:08:40,520 --> 00:08:41,160 Speaker 3: you can afford. 167 00:08:41,240 --> 00:08:42,679 Speaker 1: So like, if you. 168 00:08:42,600 --> 00:08:46,720 Speaker 3: Could buy a property in some of those western coastal 169 00:08:46,800 --> 00:08:50,719 Speaker 3: areas that you're talking about, and maybe let's say you 170 00:08:50,760 --> 00:08:52,720 Speaker 3: can buy a house because probably not too many units 171 00:08:52,760 --> 00:08:57,400 Speaker 3: around those areas, you know, what would you be sort 172 00:08:57,400 --> 00:09:00,280 Speaker 3: of saying, giving us as an indicator of the average just. 173 00:09:00,280 --> 00:09:02,320 Speaker 1: Price to be talking four hundred five found what are 174 00:09:02,320 --> 00:09:06,559 Speaker 1: we talking about for a unit or for for a house? 175 00:09:07,240 --> 00:09:11,160 Speaker 2: So for a house, the western coastal, so where we operate, 176 00:09:11,880 --> 00:09:15,160 Speaker 2: you'll you'd be looking at medium prices of anywhere from 177 00:09:15,160 --> 00:09:18,320 Speaker 2: one to one point three for a medium what about 178 00:09:18,360 --> 00:09:22,640 Speaker 2: what about a unit unit five to six hundred thousand. 179 00:09:23,000 --> 00:09:26,040 Speaker 3: So sort of the equivalent to what Canberra has for 180 00:09:26,360 --> 00:09:28,200 Speaker 3: the same sort of two bedroom, two bathroom or two 181 00:09:28,240 --> 00:09:29,400 Speaker 3: bedroom bathroom whatever. 182 00:09:29,520 --> 00:09:32,120 Speaker 2: Yeah, our numbers with CANBRA seem to be quite similar 183 00:09:32,559 --> 00:09:33,480 Speaker 2: almost all the time. 184 00:09:33,559 --> 00:09:35,640 Speaker 1: Yeah, so I appreciate your time. 185 00:09:35,840 --> 00:09:41,280 Speaker 3: Richtigans from Bell's Property Group Canel South Australia, Grace much 186 00:09:41,320 --> 00:09:41,959 Speaker 3: appreciate it.