How many of you saw Elizabeth profiled in this months API magazine?
The TL;DR version:
Quoted from the magazine article (bracketed comments are my own)
1.0% vacancy rate vs 1.9% for Adelaide metro
3.8% year on year rental growth (this combined with the above means rental demand is great)
44% of the area as renters vs owner occupiers & mortgage holders
Median house price increased 15% in the 12 months to May this year
Last boom was in 2010 at $228k median (it’s just now reached this again, so presumably this is the break out signal you’d use on sharemarket charts?)
Elizabeth itself has just 1,000 residents (Elizabeth itself is mostly the commercial hub, where one of the states largest shopping centres is) but the greater area has 60,000
Median rent is Elizabeth is $258pw at about 6.9% yield.
Nearby Elizabeth Vale has one of Adelaide’s largest hospitals and average rent nearby at $265pw for houses or $201pw for units at about 7.3% yield.
Treasurer Tom Koutsantonis delivered the Northern Economic Plan ($93 million in 15-16 FY state budget) for a range of initiatives aimed at boosting economy in northern Adelaide and Elizabeth. Upon Holden closure in 2017, he promises to use all the levers at their disposal to support new and growth industries and stimulate the construction sector. A new Manufacturing Technology Centre will be established to provide a physical location for manufacturing and services businesses. Budget also signals the development of nearby Northern Adelaide Industrial Food Park to create more job opportunities.
Margaret Lomas contributed with (snipped down in length by me) “… worried about economic matters, including Holden closure. News like that often creates often creates a sentiment that doesn’t necessarily ring true but it has a short term negative impact. … In fact many of the residents of Elizabeth work in the city and other suburbs and will continue to do so even after Holden’s closed”. She also went on to say she owns 5 properties in the area and is about to bulldoze 2 of those to build 4 units on each.
Who else has invested or will invest in Elizabeth area? Any thoughts in general?
This is an area that DT Property Management operates, so Contact Us if you have an investment property in Elizabeth or are considering purchasing real estate in Elizabeth.