Wednesday, February 9, 2011

Adelaide Beachside Housing Market (Brighton)

I keep an eye on my local housing market. I rent locally to these properties and potentially will be looking to buy in the area at sometime in the future. Brighton Beach is one of Adelaide's nicest and most popular beaches so it's not surprising that the best (beach front) real estate in the area commands a  much higher price than Adelaide's median price (which is around $400,000).

Over recent months (September 2010 to present) I've noticed a large increase in the number of property listings on the Esplanade (beach front) in Brighton.

Early in 2010 1 or perhaps 2 listings on the Esplanade was common place. Today on I counted 7.

I also note that on Old Listings there have been a couple of properties which have had their listing prices revised significantly lower in the last 9 months:

June 2010 - $1,495,000
November 2009 - $1,750,000+
April 2007 - $1,350,000

June 2010 - $1,345,000+
February 2010 - $1,400,000+

Another site I frequent (which I've mentioned on the blog before) is REFind House Prices. They have an option on the site to filter only those listings that have had a price reduction over the time they've been advertised. Here are some examples of reductions in the suburb of Brighton (not specific to the Esplanade):

$1,400,000 167a Esplanade BRIGHTON
REDUCED by $300,000 (21.43%) on 24 Sep 2010

$1,150,000 6 Seaview Terrace BRIGHTON
REDUCED by $200,000 (17.39%) on 30 Jan 2011

$570,000 10 Seymour Grove BRIGHTON
REDUCED by $75,000 (13.16%) on 12 Jan 2011

$459,500 10 Bennett Street BRIGHTON
REDUCED by $35,500 (7.73%) on 07 Jan 2011

2/182 Esplanade BRIGHTON
REDUCED by $190,000 on 01 Feb 2011

It looks like some vendors are finally coming around with their pricing... there aren't that many properties listed for sale in Brighton so it's interesting to see so many discounted (according to REFind there are 9 houses out of 30 advertised that have been discounted).

It's certainly not looking like a healthy market in this suburb. If my investments perform well and prices drop in Brighton then I might just end up back in the property market sooner than I thought!



  1. Hey BB, I live (rent) in Brighton in Melbourne. My rent is at 2.5% yield on the owner's purchase price, so I'd rather rent than buy until prices fall considerably.

    Not sure if you know the area, but very expensive. Postcode 3186 if you want to do a search. Family houses start at $2m. Beachside can be anything up to $10m. Even though price falls have not happened much yet, the first sign of trouble (increased and stale listings) is there. Big auction weekends resume this Saturday. Will be interesting.

  2. Turdle GG, looks like you've got yourself a good rental deal there! My rent would be approximately 4% yield on current market value of the property.

    It certainly will be interesting to see normal volumes return to the Melbourne auction market over the next couple of weekends...