Adelaide’s booming property market is driving buyers who are fed up missing out on established homes to seek city apartments.
Pelvay Group director Nick Pelvay, who today launches the level-35 sub-penthouse of Adelaide’s tallest building, Adelaidean, said there had been an increase in inquiries in the complex in recent weeks, as the market for established houses took off.
“In the past two weeks, inquiry has tripled, at least, and it’s resulted in transactions,” Mr Pelvay said.
“There seems to be a lot of pain out there among people trying to buy and it’s resulting in them saying they’re actually really happy with a city apartment. I think that boom has hit the apartment market and it’s going to continue to surge, because quality stock is still hard to come by.
“Apartments are always the first one for people to turn away from and the last one to get in on the action, but we’re seeing all the action now on the back of a very hot housing market.”
Across the state, real estate agents have reported homes selling for hundreds of thousands of dollars above asking prices, huge numbers at auctions and lightning fast sales.
“There seems to be a bit of a disconnect with the housing market where prices have surged so quickly and people haven’t been able to keep up,” Mr Pelvay said. “Whereas in apartment land, if we put a price out there, it’s first in, first served – we don’t escalate the price, and that’s been attractive to a lot of people.
Polly Property director James Polacek, who is selling apartments in Pirie Street’s East End complex, had also reported an increase in inquiries.
“We are seeing a lot more first-home buyers and professionals – people who six to 12 months ago were looking at an established home and now are very prepared to consider apartments,” Mr Polacek said.
Fox Real Estate agent Marina Ormsby said there had been consistent interest in the penthouse of Realm Adelaide, on Austin Street, since it was launched in December.
“We’re getting people through consistently on a weekly basis, which is incredibly positive, considering it is a very unique property with a very limited market,” Mrs Ormsby said.
The latest Valuer-General’s figures show Adelaide city apartment values are up 21.59 per cent on this time last year.