- Adelaide's housing market often receives less attention than the other capital city markets
- Units are not as popular in the city
- Adelaide has one of the lowest vacancy rates in the country, and is the best, most consistent performing housing market of the capitals
With so much attention drawn towards the Sydney and Melbourne housing markets, Adelaide is often forgotten.
The South Australian economy has been a sleeper since resources investment peaked about a decade ago, however interstate buyers have been drawn in given the states relative affordability.
The rental market is now extraordinarily tight, entering crisis territory.
However, the inner-city unit market has performed less well, with many significant apartment projects in the pipeline. Unlike cities such as Sydney, Melbourne and the Gold Coast, these types of dwellings aren’t as popular in Adelaide.
Property in South Australia is far more affordable than the eastern states. While interest rates are rising, they remain at relatively low levels, meaning for most households, it is cheaper to buy than pay principal and interest on a loan.
Leading buyers agency BuyersBuyers expects price increases of 5% this calendar year, with the price growth facilitating strong rental yield for investors. The city has a vacancy rate of just 0.3%, according to SQM Research.
Greater Adelaide
Doron Peleg of BuyersBuyers noted that Adelaide has been the most consistent housing market performer of all of the capital cities.
“Not too many major booms or busts, but attractive returns, nonetheless,” he said.
“Detached houses in land-locked areas present the greatest opportunities for investors in Adelaide.
“There is a compelling case for investors to seriously consider a suburban house in Adelaide, particularly for those mindful of their entry price and seeking an attractive rental yield as property prices remain very reasonable.”
Although there is goof affordability, units still carry some risk as they are not a popular dwelling option, especially for families. Mr Peleg added that off-the-plan units in high-density apartment blocks carry the highest level of risk.
Given this, BuyersBuyers have collated the 20 best investment suburbs in Adelaide.
- Kilburn
- Christies Beach
- Hallet Cove
- Semaphore Park
- Valley View
- Modbury
- Seaford
- Moana
- Semaphore
- Exeter
- Everard Park
- Beaumont
- Royal Park
- Marden
- St Morris
- Hackham
- Seaford Meadows
- Semaphore South
- Glanville
- Hackman West
Kilburn, 5015
Located in Adelaide’s inner north, Kilburn borders with Blair Athol, with the two suburbs being home to over 11,100 residents. Kilburn has a median house price of $472,500 and has enjoyed 28% price growth in the past. Its 10 kilometre distance from the CBD has made the suburb with investors and renters alike.
Christies Beach, 5165
Located 26 kilometres south of the Adelaide CBD, Christies Beach is a popular seaside suburb offering a unique commercial strip along the entire length of Beach Road. Despite this, the median house price is $460,000 – extraordinary compared to any waterside suburb in Sydney and Melbourne. There are 43 houses currently for sale in the suburb.
Hallett Cove, 5158
Another coastal suburb south of the Adelaide CBD, Hallett Cove has a population of over 12,500. Just 21 kilometres from the CBD, the median house price for the area is $600,000, having enjoyed 15% over the past year. Given its coastal location, and relative closeness it has remained popular with families. There are around 30 houses for sale.
Semaphore Park, 5169
Located in Adelaide’s west, Semaphore Park is a popular coastal suburb, located on the Gulf St Vincent just 13 kilometres from the CBD. Despite this prime location, the median house price is $650,000 – well below the median house prices in Melbourne and Sydney – despite 14% growth in house prices over the past year. There are around 20 houses for sale.
Valley View, 5093
In Adelaide’s north, Valley View has enjoyed 23% 12-month price growth yet still offers a $521,000 median house price. 13 kilometres northwest from the CBD, Valley View boasts many parks and walking trails. Currently, the suburbs boasts a 4.07% annual rent yield return, with 32 houses currently for sale.
Modbury, 5092
15 kilometres northwest of the Adelaide CBD is Modbury. 25 minutes from the CBD, Modbury is known as a gateway to the Adelaide Hills. The median house price is $491,000, a rise of 30% compared to the previous year, with 40 houses currently listed for sale.
Seaford, 5169
Located 32 kilometres south of Adelaide, Seaford is another popular coastal suburb, being near a well known surfing beach. Seaford has enjoyed 30% price growth during the past 12 months, with a median house price of $595,000.
Moana, 5169
Located 36 kilometres from the Adelaide CBD, Moana is an outer coastal suburb of Adelaide. It neighbours Seaford, and has a population of 3,344. Moana has enjoyed 21% price growth thanks to buyers and investors seeking out a better work life balance. However, the median remains at $580,000.
Semaphore, 5019
In Adelaide’s northwest is Semaphore, 14 kilometres from the CBD. The suburb is the most expensive on this list, with a median price of $925,000. However, it remains popular with investors and renters, the latter seeking the work-life balance the suburb offers. There are only a handful of homes for sale and for rent, at time of publication.
Exeter, 5019
Next to Semaphore is the relatively small suburb of Exeter, with only just over 1,000 residents. Exeter has recorded strong price growth over the past 12 months, with a 30% rise, taking its median house price to $722,500. There is only one property for rent, and three for sale.
Everard Park, 5035
Located just three kilometres southwest of the Adelaide CBD, Everard Park remains popular with tenants due to its central location, and is served by the Glenelg tram. There are just seven properties listed for sale at time of publication, with a median house price of $1.18 million. Overall, the suburb has a median sale price of $894,700.
Beaumont, 5066
Located in the City of Burnside, Beaumont is seven kilometres east of Adelaide CBD. The inner suburb is expensive, with a median sale price of $1.47 million having experienced annualised growth of 42.3% during the past six months. Beaumont is popular with tenants given its short commute to the city while offering the benefits of hills living.
Royal Park, 5014
Located in Adelaide’s western suburbs, 12 kilometres from the CBD, Royal Park has experienced strong price growth recently. The median house price is $590,000, with apartment and units at $435,000. Annualised the suburb has experienced 28% over six months.
Marden, 5070
Five kilometres northeast of the Adelaide CBD is Marden. This suburb has a high median house price of $925,000, while apartments are considerably cheaper, with the median being $377,500. There are only eight properties listed for sale at the moment.
St Morris, 5068
Five kilometres from the Adelaide CBD, St Morris is an expensive suburb, with the median sale price currently $1,016,500. There are currently only seven properties for sale.
Hackhan, 5163
Hackham is an outer metropolitan suburb of Adelaide. Median house prices are $450,000, with $350,000 for units, making it a relatively affordable suburb, and offering strong returns for investors with median gross yield of 4.8%.
Seaford Meadows, 5169
An outer and relatively new suburb, Seaford Meadows is 35 kilometres south of the Adelaide CBD. The median house price is $530,000, making the suburb relatively affordable, with rents typically around $430 per week.
Semaphore South, 5019
Located in Adelaide’s northwest, 14 kilometres from the CBD, Semaphore South is a popular beach suburb. Median prices are high, at $925,000, with the average rent at around $500 for houses.
Glanville, 5015
15 kilometres northwest of the Adelaide CBD is Glanville, home to a small population of 374 residents. The median house price is $520,000, based on 13 sales over the past 12 months, up more than 14%.
Hackham West, 5163
Hackham West is an outer metropolitan suburb, located in the City of Onkaparinga. There are around 3,620 residents in the suburb, which is located 25 kilometres south of the Adelaide city centre. There are only 13 properties for sale.
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To find out the Top 20 Best Investment Suburbs for Melbourne, check out this article.
To find out the Top 20 Best Investment Suburbs for Sydney, check out this article.
To find out the Top 20 Best Investment Suburbs for Brisbane, check out this article.
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