Where to buy an investment property in Adelaide

Keen to buy an investment property in Adelaide but not quite sure where to look for one?

Property analyst and Hotspotting founder Terry Ryder has highlighted five local government areas tipped for strong growth this year.

Port Adelaide Enfield topped the list in his Top 5 Adelaide Hotspots 2021 report, followed by Playford, Mitcham, Tea Tree Gully and Salisbury.

Mr Ryder said Adelaide as a whole was the country’s “most underrated market” so it was difficult to whittle the hot spots down to just five locations.

He chose them for several reasons, including their housing affordability, strong demand to buy and rent, proximity to facilities and new employment hubs.

Port Adelaide Enfield was his number one pick not only because property prices and demand were climbing but because the precinct was being boosted by several other factors as well.

A long-term project to build vessels for the navy and a major relocation of State Government jobs to the area were major factors, Mr Ryder said in his report.

“These and several smaller projects are creating jobs and turning historic Port Adelaide into a thriving residential, commercial and tourism destination,” he said.

Mr Ryder said with median house prices varying from the high $300,000 mark in Rosewater to the mid $600,000 price point in the beachside suburbs, it was still affordable.

“You can’t buy anything for $400,000 in Sydney and Melbourne,” he said.

“There’s great value for money in any of those suburbs.”

Ray White Port Adelaide agent Nick Psarros said the Port and its surrounding suburbs had been revitalised over the years and it was drawing more people to the area.

“Port Adelaide used to be very industrial, a working harbour, and there were lots of properties that were tired, old and rundown,” he said.

“Now there has been this resurgence and there’s a lot of buyers moving in and seeing opportunity.”

Mr Psarros said househunters were drawn to the area’s affordable property prices and opportunity to renovate, but it was the restored pubs and cafes and new developments that made it such a popular place to live.

AT A GLANCE

The key points that make the five Adelaide LGAs hot spots

Port Adelaide Enfield

– Defence Force contracts and State Government initiatives are boosting the economy and creating jobs in the region.

– Housing values and demand for property have been climbing in many suburbs over the past year.

– Prices range between the high $300,000 mark to the mid $600,000 mark

– Vacancy rates in the area are below 1 per cent while yields range between 3.5 and 5 per cent.

Playford

– The opening of the Northern Connector linking northern Adelaide to key freight transport infrastructure has boosted trade and business opportunities.

– RAAF Base and Lyell McEwin Hospital are major employers in the region.

– Median house prices in many of its suburbs range between $200,000 and $300,000 and are rising.

– Rental yields are high, above 6.5 per cent in several suburbs, while vacancy rates are tight, below 1 per cent in most areas.

Mitcham

– About 15km from the city, Mitcham is considered the middle-market of Adelaide, with house prices typically range between $500,000 and $700,000.

– Prices are increasing while vacancies rates are among the lowest in the nation, with some postcodes close to 0 per cent.

– It has a low unemployment rate due to its proximity to key job noses, including Adelaide CBD, the Flinders medical and education precinct and the Tonsley innovation centre.

– Local economy and amenity to be strengthened with the construction of the $1.5 billion Flinders Village – an expanded health and education project.

Tea Tree Gully

– Property prices range between the mid $300,000 mark to the mid $500,000 mark, with many suburbs recording steady growth in the past year.

– Median rental yields range between 3 and 6 per cent, while vacancy rates are below 1 per cent.

– The region is well connected to Adelaide CBD, job nodes in Port Adelaide and nearby business parks in Edinburgh and Mawson Lakes.

– Demand for properties is high in the region, which has a low unemployment rate.

Salisbury

– The area is in the midst of a construction boom, which is driving the economy and generating thousands of jobs.

– Its proximity to major employment nodes is a key part of its appeal – food and beverage manufacturing, defence, cybersecurity and space and emerging industries are attracting business and generating jobs.

– Median house prices range from the $300,000 to the mid $400,000 mark, with values in many areas expected to rise on the back of increased buyer demand.

– Median rental yields range between 4 and 6 per cent, while vacancy rates are generally below 1 per cent.

(Source: Terry Ryder’s Top 5 Adelaide Hotspots 2021 report)

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