The SA suburbs to be wary about buying in

Looking for capital value growth? One real estate expert says not to expect it in these 20 suburbs. Find out where he thinks prices have peaked.

Tom Bowden and Aidan Devine

2 min read

March 16, 2024 - 7:30AM

News Corp Australia Network

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Adelaide’s booming property market has been the talk of the nation in recent years, but now one real estate expert is warning against buying a house in some SA suburbs for fear their prices may have peaked.

SuburbData analyst Jeremy Sheppard has singled out 20 SA suburbs buyers should be wary of purchasing in, believing they are either at or near the top of their market, and the likelihood of strong capital growth in the short term could be unlikely.

Out of all of SA’s suburbs, buyers were most at risk of overpaying in Maslin Beach, in Adelaide’s south, he says.

Jeremy Sheppard of SuburbData. and DSR Data. Pic: DSR Data.

Mr Sheppard, who analyses where suburbs are at in their property cycles and attributes them a weighting out of 100 – where 100 is ready to boom, 0 is absolutely peaked and 50 at the middle of its cycle and difficult to determine when it will peak or trough – scored it a 4.

Paired with a demand-to-supply ratio of 32 per cent – the higher the score, the higher the demand per property and the greater the chance of potential price growth – he warned the typical value seen in the suburb of $952,200 might be as good as it gets.

It’s a trend seen in the northern suburbs – where many markets have emerged as investment hotspots in recent years – with Elizabeth South, Smithfield Plains and Elizabeth East ranked 2 to 4 respectively. Sellicks Beach in Adelaide’s south rounded out the top five.

Mr Sheppard said the Elizabeth area used to be popular with interstate investors due to its affordability and strong yields – both of which aren’t what they were.

“Some of those nearby areas had 50 per cent growth,” he said

“There are slim pickings now if you’re seeking cheaper prices.”

Mr Sheppard said the suburbs he identified in his report had either “run out of puff or they’re about to run out of puff”.

“If buyers want to get into these suburbs for cheaper, they may get a saving if they wait three to six months in these areas,” he said.

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It wasn’t just Adelaide’s affordable areas that made his list, with the prestige suburbs of Glandore, Brighton, Beulah Park and Henley Beach all singled out.

“If you buy now, you have to be cautious – you could find if you buy now that you have negative equity,” Mr Sheppard said.

James Packham, managing director of Harcourts Packham

Harcourts Packham managing director James Packham said people should take the list with a pinch of salt as there were many factors to consider when buying.

“It’s important to remember that property is a long-term investment,” he said.

“You’ll likely experience multiple market cycles throughout your ownership journey.

“The key is to buy when it’s the right decision for you and your individual circumstances.”