Amber and Brian Sheedy moved from Sydney to Adelaide because of Sydney’s house prices. Pic: KERYN STEVENS

WITH the property boom peaking at record levels in Sydney and Melbourne, interstate bargain buyers are now snapping up bricks and mortar in the Adelaide market.

Double-digit price growth in the two main eastern cities has created greater demand for homes and units in Adelaide, where house values rose 1.7 per cent in the past year to a median price of $443,750.

In comparison, Sydney sits at $931,000 and Melbourne is $685,000.

The local market provides “exceptional value,” according to Real Estate Institute of South Australia (REISA) Chief Executive Officer Greg Troughton, who has been monitoring the trend for the past 12 months.

ADELAIDE ADVANTAGE:

38 Francis Street, Lightsview is on the market for $700,000- $750,000. which is about the same as the median unit price in Sydney. It has four bedrooms, ultra modern decor and is less than 10km from the CBD.

Troughton said while it’s difficult to judge the exact level of recent interstate demand, he believes it has increased by a third since 2012.

“Five years ago there was interest but focus remained in the east — now interest, value and focus have collided with people seeing that every dollar spent here in Adelaide requires almost two dollars to buy similar (properties in) Sydney and Melbourne.”

He says there has been increased level of market activity from expat South Australians.

“Expats are looking for a break from paying more and spending more time in traffic.

“I also suspect that some, according to my members, want to get in on the ground floor in anticipation of further growth here in SA.”

Craig Thomson of Magain Real Estate, which specialises in Adelaide’s southeastern and southern suburbs, estimates interstate buyers account for one in every 15 of his inquiries, compared to one in every 30 a year ago.

“They’re definitely translating to sales — sometimes they are inquiring when they are still over there,” Thomson said. “We’re seeing a lot of sight unseen (purchases), or they have someone here on the ground.”

He said inquiries came from a mix of investors who fear their own markets are plateauing and people with a previous connection to Adelaide wanting to relocate.

ADELAIDE ADVANTAGE:

6 Dunsford St, Craigburn Farm is on the market for $695,000- $735,000, which is about the same as the median unit price in Sydney. The well-presented home has four bedrooms and is on a 948 sqm block.

“They’re selling in Sydney and Melbourne and using equity growth and buying here,” he said. “Often they are investing with an idea of coming over.”

He said he was also receiving inquires from professional advocates, looking to buy properties on behalf of eastern states investors.

“Twelve month ago we didn’t get them,” he said.

Harcourts Sheppard Property Consultant Sarah Sheppard, who specialises in the Adelaide’s western suburbs, said she also received regular calls from interstate from buyer advocates.

“They’ve attended eight of our auctions in the past six months and they’ve bought one place — they’re definitely driving prices up,” Sheppard said.

“They often make pre-auction offers that are very high — they think we’re behind Sydney.”

She said she had also noticed an increase in expats returning to Adelaide to raise a family in the past six months.

ADELAIDE ADVANTAGE:

260 Gilbert Street, Adelaide is on the market for $695,000- $730,000, which is about the same as the median unit price in Sydney. The home has three bedrooms an alfresco living area and balcony, and is well presented. It is smack in the heart of the CBD.

“We didn’t see them before. We’d see them occasionally now they’re obvious. They’re in our face — they’re are ringing a couple of times a week.”

Andrew Harvey, from Raine & Horne Salisbury, said he sold two homes to a Sydney investor in the past week.

“I don’t think it’s doubled but it would be up 30 per cent in the last six months,” he said.

“They (investors) are deciding Sydney and Melbourne are plateauing.

“They are saying ‘I would rather go to a more stable investment area’. Adelaide has always been stable.”

THE STORY OF THE SHEEDYS

THE prospect of living in a two-bedroom apartment an hour away from their CBD-based jobs convinced the Sheedys to return from Sydney to Adelaide about 18 months ago.

Both originally from the city of churches, they spent three years in Sydney for life experience and to develop their careers.

But they found the grass was greener here when they decided to settle down, marry and buy their first home, which they have just done in North Plympton.

Brian and Amber Sheedy in their new home in North Plympton. Picture: KERYN STEVENS

“We could have afforded a two-bedroom apartment at least an hour from the city (in Sydney) or we could have afforded a one-bedroom apartment closer,” Mrs Sheedy, 35 says.

“We have family here but (the move) was also about being able to afford something with a backyard and a block.

The idea of escaping the long Sydney work commute, synonymous with life in the city’s outer suburbs, was another drawcard for the couple.

“We knew people (in Sydney) who would live on the Central Coast and commute two to two and a half hours.

“They thought that was normal but, being from Adelaide, we knew it wasn’t normal.”

While she occasionally misses Sydney’s strong multicultural diversity and food options, Mrs Sheedy is delighted to be home.

“We love the Adelaide lifestyle — at our wedding we had all South Australian produce and we know the housing market is still going up — it’s affordable but growing.”