Demand for land in established suburbs closer to the city is causing prices to soar, as buyers prove they’re willing to pay big bucks to secure the rare offerings.
Real Estate agents say it is difficult for people to find land unless they are prepared to look in Adelaide’s outer north and south.
The listing of two rare, sizeable blocks of land within easy commuting distance to the city offer good examples of just how sought-after they are, with developers being sent into a frenzy.
In just the first two days of a month-long marketing campaign, a vacant 1114sqm allotment at Magill received four purchase offers, while several offers have also been received for a slightly larger block at Dernancourt.
The vacant Magill block at 459 The Parade is tipped to fetch more than $1m.
Its location is a big part of why it’s in such high demand.
Constantine Pappas, from Raine and Horne Unley, who is selling the land parcel at 459 The Parade, Magill, said the early interest had strengthened his vendor client’s resolve to wait until auction day to see what price the property would eventually bring.
While no reserve price has been released, Mr Pappas expected the successful bid would be in the “high’’ $1m range.
That’s around the median price for a house in Magill, which latest PropTrack data shows sits at $1.159m.
The property, which is just seven minutes from the CBD and close to St Peter’s Girls’, Pembroke and Norwood Morialta High schools, comes with land division consent for two Torrens title blocks and planning consent for two, two-storey semi-detached, four-bedroom homes.
“This is literally on the border of Magill and Kensington Gardens – and if you put the Kensington Gardens postcode on this the selling price would increase by another 20 to 30 per cent,’’ Mr Pappas said.
“You’re on the Kensington Gardens side of The Parade so it’s quieter (than being at Norwood) and you are so close to the CBD.
“In the eastern suburbs, something like this is very, very rare to find – it hardly ever happens.
“It’s a great opportunity and I’m not surprised by the level of interest.’’
Ray White Salisbury selling agent Winston Coxton, who is selling an expansive 1392sqm allotment at 34 Payton Ave, Dernancourt, just 9km from the city, said land for development was increasingly difficult to find unless buyers were prepared to travel to the outer northern or southern suburbs.
Offers above $1m have already been put on the table for the Dernancourt block at 34 Payton Ave.
It’s home to a tennis court at the moment but has already been approved for subdivision into four 348sqm allotments.
The Dernancourt block, a tennis court that was being sold by the owner of a neighbouring property, has been approved for subdivision into four 348sqm allotments, which Mr Coxton said were ideally suited to four townhouses.
Offers in the vicinity of $1.4m had already been received, he said, but the vendor was hoping to sell for about $1.6m.
That’s well above the suburb’s median house price, which is $858,000 according to latest PropTrack data.
“It’s quite a nice block and it’s got some good views of the hills,’’ Mr Coxton said.
“It’s a space my client doesn’t use anymore.
“Obviously, we need more houses and he thought, ‘I’m not using it, the kids are all grown up so why not cut it off and put it to good use’.
“The best part is it’s got the stamped plans from council approving the four blocks so you don’t have to go through the (subdivision) process.
“This has got the green light and is good to go (be developed).’’
A lack of suitable land for housing within the Adelaide area has become a major hurdle to easing the state’s housing crisis.
New laws were recently passed to open up farming land to developers in the north and south, including a new satellite city at Roseworthy that will one day be larger than Mount Gambier.
– by Lauren Ahwan.
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