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Piteo adds. “It tends to have more
grandeur homes, that Tudor style, a lot
more character homes.”
Koulizos lives in a neighbouring
suburb and also rates it.
“There’s a lot of redevelopment going
on in Lockleys,” he says. “Knocking
down of old art deco homes on big
blocks and the construction of two big
duplexes. The fact that it’s by the river
between the city and the sea is also
“Lockleys is appealing to those people
who want a big backyard because you
can still buy the art deco home on 700
square metres and it also appeals to
those people who want a brand new
home between the city and the sea.”
He believes its entry on both lists is
due to the sale of new homes.
“If you can afford to get into Lockleys,
fantastic! If you go along Henley
Beach Road, other than Henley Beach,
Lockleys is probably the next best blue-
Lockleys posted a vacancy rate of
1.6 per cent in June, according to SQM
Research. Given its sought-after status,
it’s perhaps not surprising that Lockleys’
gross rental yield is a modest 3.7 per
cent. However, of all the locations to
make both lists, Lockleys recorded the
most transactions with 99 sales in the
year to June, lifting the median house
price by 11.4 per cent to $562,500.
The semi-rural location of Littlehampton
just outside Mount Barker in the
Adelaide Hills boasts cottage housing
and acreage living for those seeking a
tree-change, as well as an increasing
supply of new stock for those who prefer
low maintenance (see our case study).
It’s also easily accessible from the city via
a freeway, with the commute only taking
half an hour, give or take.
“It has always been a really nice spot,”
Piteo says. “It’s probably the last little
settlement before you head down to
Koulizos notes that Littlehampton has
been earmarked by the local council for
the development of new housing and
believes it’s the number of new homes
sold that has pushed it onto the lists of
“In my humble opinion, that’s a place
where I wouldn’t be going because the
area has a population of 20,000 and they
want to increase that to 46,000,” he says.
“They want to more than double
the population in the area, so simple
economics says if they’re going to
increase supply, then where’s the
pressure on your particular property to
go up in value?
“Littlehampton in the existing area
with the lovely old cottages, yes. But to
buy in one of the new estates, from an
investor’s point of view, no.”
With a vacancy rate of 2.8 per cent,
investors will want to watch the supply
and demand scale in this area closely to
see which way it tips, remembering that
anything above three per cent points to
an increased risk of oversupply.
Oakden, situated about 11 kilometres
northeast of the city, is a newish suburb.
“Oakden sits right alongside
Lightsview,” Piteo says.
“It was established in the early to
mid-1990s as an estate and it’s been
overlooked a little bit while other areas
have been growing. Now that these other
areas are filling up, people are jumping
“It’s a great little spot with transport
According to APM, buyers were fairly
active in the area in the year to June
with 77 properties changing hands. The
Chris Giannes isn’t surprised Littlehampton
made it onto the list of outperforming
Adelaide suburbs. It confirms what he
already knows – Littlehampton has big
potential. This small suburb in the Adelaide
Hills, just on the fringe of Mount Barker, has
been the focus of this public servant for the
past six years. In that time he has bought
three vacant blocks, built new houses on
them and is in the process of completing his
fourth. The houses are all three-bedroom,
two-bathroom, fully enclosed-garage
properties that he rents for between $355
and $365 a week.
The blocks are all between 500 and 600
square metres in size and within a handy
100 metres of the bus stop.
“That particular area has got very good
access to the freeway, literally less than one
minute away,” Chris says.
“You’ve only got one set of traffic lights.
“You’re not in Mount Barker and you’ve
still got that cottage country feel, but in
saying that you can walk to the bus stop,
to the pub, to the shopping centre, dentist,
medical centre, chemist – everything is
within a five-minute walk and Mount Barker
is only a four-minute drive away.”
Chris paid between $130,000 and
$165,000 for each block of land, plus an
additional $180,000 to $200,000 per
construction. Happily, his timing coincided
with the state government’s $8000
building grant, which he was able to use
towards one of his rental properties.
“My hobby on the weekends is to do the
landscaping side of things,” Chris says.
“I do that myself but I get a spec builder to
come in and do the build.
“The reason I build them new is I get a
depreciation schedule straight away and I
get good depreciation in the first 10 years.”
Not only that, but Chris has also picked
up instant equity of between $30,000
and $50,000 on
completion of each
house. He attributes
this to some of the
features he includes,
full insulation and
“My aim is after 10
years to freshen up the
stock, sell it and build
more,” he says.
“Over the years I
have not had even two
weeks of not getting
rent from any of them.
They’re nice, tidy and functional.”
Chris, who once dabbled in commercial
property but prefers the stability of
residential real estate, is confident he’ll have
no trouble selling his houses if and when he
“I try to keep the property in that
$395,000 resale value when they’re
finished because they sell like hot cakes in
that price bracket.”
There’s the added benefit of flexibility
when you hold multiple affordable properties
in your portfolio, he adds.
Littlehampton, big benefits
Build new for
instant equity and
One of Chris’ properties in Littlehampton
THE STATES n South Australia
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