The frustrating wait for newly-built homes is pushing prices for established property to record highs, leading property experts say.
Multiple house records have been smashed across Adelaide in the past year, with local selling agents predicting more to come.
LJ Hooker Mile End-Woodville agent Thanasi Mantopoulos has already broken five records for housing in the western suburbs this financial year – previously, he expected to set a new suburb record once every six to 12 months.
Mr Mantopoulos’s last record was achieved with the weekend sale of 14 Redin St, Richmond, for $2.13m – $330,000 above the suburb’s price record for a single residence.
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Record house prices are tumbling right across Adelaide. Picture: NCA NewsWire/Nikki Short
He said the price paid for the three-year-old, five-bedroom luxury home was “quite earth-shattering’’, given it was outside the highly sought Adelaide High and Adelaide Botanic High school zones.
“It was such a good house that I was expecting we would (set a new record) but being that high – 18 or 19 per cent (above the previous suburb benchmark) – was a surprise,’’ Mr Mantopoulos said.
“It really came down to the quality of the build and the finishes – the vendor just went above and beyond with the attention to detail, the selections and the floorplan.’’
Mr Mantopoulos said those not willing to wait for a house build were pushing up prices for established properties, prepared to fork out unprecedented amounts for homes that could be moved into immediately.
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The Richmond property at 14 Redin St has set a new record for the suburb.
Relatively new and recently renovated properties were especially in high demand, he said.
The western suburbs were a popular buying option, he said, given their proximity to the city and beaches and their relative affordability compared to eastern Adelaide.
“Since July last year, there’s been five suburb records set (by LJ Hooker Mile End-Woodville) in West Richmond, Welland, Rosewater, Largs North and Richmond,’’ Mr Mantopoulos said.
“Three of those were recently renovated or they were new builds.
“People don’t want to go down the avenue of building (their own home) – that’s like a two-to three-year process.
“That (desire to move into a house immediately) is really pushing prices up more than anything else at the moment and … we will definitely see more (suburb) records being broken.
“(House sales in) areas like Mile End, Thebarton and Torrensville may get close to the $3m mark by the end of the year.’’
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It sold for $2.13m – $330,000 above the suburb’s previous price record for a single residence.
Real Estate Institute of South Australia chief executive officer Andrea Heading said a desire to buy established homes rather than build new was “certainly a contributing factor’’ to high sales prices.
She said lengthy build times, as well as fears over dodgy builds and the collapse of building companies were driving the preference towards established properties.
“It’s probably less speculative (to buy established rather than build) in that you can see what you are getting,’’ Ms Heading said.
“It’s fair to say there have been quite a few (sales) records set recently.
“It’s not so much about supply and demand but more that … there’s been some pretty impressive properties that have hit the market and there are people that are prepared to pay for them.’’
Recent data showed owner-occupier buyers were staying in their properties for longer, which for some could justify the higher sales price, Ms Heading said.
– by Lauren Ahwan
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