Adelaide’s 10 most promising locations for price growth in 2022

House prices have already climbed significantly over the past two years, but a new report reveals the locations tipped for more strong growth next year.

Adelaide’s traditionally steady and consistent property market will go from “solid to spectacular” in the next year, a new report predicts.

Rising sales volumes and low vacancies have already led to price and rent growth across the city through 2020 and 2021.

But Canstar’s inaugural Rising Stars Property Report, written with property expert and Hotspotting founder Terry Ryder, identifies Adelaide’s 10 most promising locations for price growth in 2022.

“Our analysis suggests Adelaide will transition from solid to spectacular growth in the near future,” the report reads.

Sales volumes, quarterly house price growth, vacancy rates, rental growth and infrastructure spending were used to determine prospects of future price rises.

Half of the 10 rising suburbs recorded double-digit house growth over the past year, including Belair, Golden Grove and Morphett Vale, while nine had median house prices under $750,000.

All of them had vacancy rates below 1 per cent and six had median rental yields above 4 per cent – Eden Hills, Elizabeth Vale, Greenacres, Morphett Vale, Seacombe Gardens and Reynella – at a time when the capital city average is 2.8 per cent.

While Adelaide overall ranked ninth out of 14 capital cities and regional areas based on their potential for future capital growth, Mr Ryder said that would likely change in a few months.

“Adelaide is one of the best buys in the country because you get so much for your dollar compared to the bigger cities,” he said.

“It’s underpinned by an economy that’s always improving, too.

“Adelaide ranks overall ninth and my feeling is that if we did the report again in six months time it would rank significantly higher.

“It hasn’t yet fulfilled its huge potential.”

Despite regional SA being ranked last, Mr Ryder said it was full of locations with strong prices, low vacancies and rising rentals.

He said in the report that it was “a time in Australian real estate when you can come last and still be a boom market”.

“I’m referring quite particularly to regional SA,” he said

Mr Ryder said the market would soon start to balance out as “prices can’t keep rising at this level”.

Money expert and Canstar editor-at-large Effie Zahos said buying in a growing market was vital.

“Prices are rising and if you are borrowing a lot of money and your mortgage is more than 80 per cent, you want the value to at least hold its ground,” she said.

“You don’t want to be vulnerable. Prices don’t always go up, and they can fall in some locations. You don’t want to owe more than what the home is worth.

“To avoid that, you need to buy in an area where your equity will grow.”

The full Rising Stars Property Report can be viewed here.