Property Insiders - Adelaide Real Estate with Marina Ormsby

Performance Property Data

“Trying to sell a single-fronted cottage in North Adelaide without a carpark…the market sees it as an issue.”

Real estate agent, Marina Ormsby, is David’s guest for this edition of Property Insiders. They chat about the intricacies of the Adelaide real estate market and give an update of where it is at.

Marina has been in the industry for 17 years, but got her start in commercial real estate. She then took a residential course and bought into a franchise group. She tells David that residential sales are more exciting due to including emotion. Commercial sales, on the other hand, is more about numbers and business.

Marina tells David that Adelaide is a bit like a small town where local buyers are picky about what they want to invest in. Properties that often don’t see much growth in the city are those with no car parking or those near certain buildings, such as churches. Interstate buyers will come to buy those assets, however, because Marina believes they are less picky.

The locals in Adelaide are very conservative, and don’t like to compromise on properties. They still feel like they can have it all - they can live close to the city for a price comparably a lot less than Melbourne or Sydney. Marina suggests that everyone wants the same thing: character homes in a great street scape.

David and Marina chat about how often these character homes have crack and other structural wear-and-tear, but this does not act as a deterrent for local buyers. Interstate buyers, however, will often see these homes as money pits, and will avoid them. David admits that interstate buyers will often not consider what the local market wants.

They then talk about pricing strategies for Adelaide sales, both in the auction, and private-treaty market. Marina says that buyers will often expect a higher reserve than advertised in the case of an auction, but will expect the advertised price in a private-treaty.

Marina doesn’t sell too many units, but has noticed a big influx of stock, which she believes will lead to an oversupply. She doesn’t imagine that in five years they will be worth what they are now. Despite this, Adelaide has some great properties around the inner fringes of the city, and the market is strong at all price points, except for assets $2M plus, which is being impacted by banks tightening their lending up. Most buyers in Adelaide are in the $700K to $1M market.

David notes that Adelaide prices are almost half of what they are in Melbourne for something comparable. The market will continue to perform well, because if remains affordable.

They close the chat by discussing the popularity of Adelaide auctions, which see quite a number of people coming through a property, with a significant number of bidders.

About David’s guest, Marina Ormsby

Marina Ormsby has enjoyed a stellar career in real estate through a combination of hard work and a commitment to excellence. She is currently a Property Consultant with Klemich Real Estate, but has been in the industry for the better part of the last 17 years.

With a clear focus on customer service, Marina has established solid relationships with both vendors and buyers and over time, has become a trusted friend to many who have relied upon her blend of enthusiasm and experience.

Market knowledge and superior negotiation skills are the cornerstone of Marina’s success and she has built her reputation on achieving record prices with below average days on market.

About the host, David McMillan

During his 16 years in the property industry David has worked as a property valuer and property adviser to private clients, financial planners, accountants, finance brokers, major banks and governments. He has been involved in more than $500M worth of transactions across Victoria, New South Wales, South Australia & Queensland.

Since 2009, David has been specifically focused on helping medical professionals, expats, business owners and busy executives build effective property portfolios.

David is a fully licensed real estate agent in Victoria, South Australia and Queensland (CEA), Certified Practicing property Valuer (CPV), Qualified Property Investment Advisor (QPIA) and most importantly is an active property investor. David joined the Australian Property Institute in 2001 and is now an Associate (AAPI) and in 2009 became a member of the Real Estate Institute. David currently sits on the board of Property Investment Professionals of Australia (PIPA) to promote ethics in the property investment industry.

‘Property Insiders’ is one of three segments you will hear on the Performance Property Data podcast. Released fortnightly, they are conversations between David McMillan (Director Acquisitions - Performance Property Advisory) and industry leaders offering knowledge and expertise.

‘The Property Pineapple’ is released monthly and is hosted by Sharon Taylor (Research Analyst - Performance Property Advisory). The show presents listeners with stories from real investors, discussing their wins, and admitting their losses.

And ‘Performance Insights’ are released every Wednesday and Friday, giving you technical information and the lowdown on key property markets around Australia. These episodes are also available as short videos at our youtube channel.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au to become a part of the Performance Property Community for access to exclusive content.