Revealed: Best investor hotspots in Adelaide to suit every budget

Looking to invest in Adelaide’s hot property market? Here are the suburbs listed across price points as most appealing based on demand, capital growth and rental yields. SEE FULL LIST.

From beachside suburbs to those closer to the city, northeastern suburbs to those further south, there are plenty of areas investors could choose from, and at every price point, according to a new report revealing the top suburbs to invest in across Greater Adelaide.

The exclusive “Make your move” data from PropTrack analysed all metropolitan suburbs and ranked them as ripe for investment, based on demand, historical capital growth, and rental yield.

PropTrack economist Angus Moore said both Adelaide and Brisbane had gained immense popularity among investors.

“Over the course of the pandemic, we have seen people place a lot more value on having more space in their dwelling, whether it’s an extra bedroom or a larger backyard,” Mr Moore said. “That has benefited cities like Adelaide and Brisbane that are relatively more affordable compared to Sydney and Melbourne and offer those larger dwellings at more affordable price points.

“However, not all investors are the same. For some, capital gains may be more important than rental yields. For others, rental yields would matter more.”

Entry-level investors, with budgets below $500,000 should look at suburbs such as Elizabeth South, Hackham West and O’Sullivan Beach that have recorded more than 40 per cent growth in their median house price. The average rental yield in these suburbs was up by more than 4.8 per cent. There are 41 suburbs that have recorded strong price growth but remain well within reach with median house prices sitting below $500,000.

Also among the top picks for investment in this price bracket are Christie Downs, Brahma Lodge and Para Hills.

For those with more money to invest, the report has listed more than 100 suburbs where the median house price was more than $500,000 but under $1m. Taking into account capital gains and rental yield, the top 10 suburbs for this budget were Oakden, Modbury North, Port Noarlunga, Blair Athol, Northfield, St Marys, Mansfield Park, Sellicks Beach, Woodville West and Valley View.

Having recorded 120 house sales in the past 12 months, Modbury North has emerged as a much sought-after suburb among investors. The median house price was $575,000 and the suburb had a strong 4.5 per cent rental yield.

Sales agent Mohit Gupta of Ray White Tea Tree Gully, who sold more than 40 houses in the suburb in the past 24 months, said the popularity of The Heights School was attracting investors to the area.

Jeremy Lim and his daughter Amaris Lim at their Norwood home that is listed for sale. The suburb has been listed as a hotspot for investors. Picture: Mark Brake.

Investors keen to park their money in best-performing suburbs where the median house price was $1m or more, have 22 suburbs to choose from.

With a median rental yield of 2.9 per cent, Burnside, Henley Beach and Vale Park is where investors stand to maximise their returns. It’s closely followed by Norwood with a rental yield of 2.8 per cent.

According to Harris Real Estate sales agent Georgie Todd, despite its high median house price of $1,345,000, Norwood continued to be popular with investors. More than 80 houses were sold here in the past 12 months, the data reported. “Given the proximity to the city, it’s very popular with young professionals who are keen to live in the area. The rental market is also very strong and that makes it attractive for investors,” Ms Todd said.

The popularity of the suburb and the steady price growth is something of which Norwood resident Jeremy Lim is acutely aware.

The civil engineer has recently listed his 1910-built Federation villa at 18 Clarke St in Norwood and is looking to move to Royston Park.

“Homes in Norwood are much sought-after as it’s a great place to raise a family,” Mr Lim said. “We bought the property around five years ago and upgraded it. We put in the wardrobes, a double carport etc. We also renovated some parts structurally and enhanced the aesthetics and that has added value to the home.”

BEST INVESTOR MARKETS IN REGIONAL SA

The town of Angaston in Barossa Valley’s east has topped the PropTrack report for the best regional locations in the state to invest in.

It was the clear winner with median prices increasing by 36 per cent over the past 12 months to $423,000. Houses in the area also returned 5.1 per cent rental return, on average.

Wallaroo and Port Elliott secured the second and third spot with median house prices of $318,000 and $748,000 respectively.

Arjun Paliwal, founder and head of research of data-driven buyer’s agency InvestorKit said many of Australia’s regional cities would continue to see strong performance and places like the Barossa Valley were on the investors’ radar.

“As the improvement in infrastructure has occurred, Barossa is feeling closer and closer to Adelaide,” Mr Paliwal said.

“The current rental vacancy of Barossa Valley is extremely close to zero per cent, with agents seeing 10-plus applications for rentals within a short period of being on the market. Investors see confidence in finding a tenant at rapid speed and the ability to earn good rent makes investing in properties here very attractive.”

Also among the top 10 regional hotspots for investment were the suburbs of Kadina, Millicent and Encounter Bay.