The property boom might be running out of steam but the fact remains, it’s never a bad time to buy. That holds even truer in Adelaide which has been less impacted by economic forces than in the eastern states.
So the time is right but what about the place?
Everyone knows location is key but identifying what makes a great location has some science behind it.
You’re searching for an area that hasn’t yet exploded in terms of its median price – but is about to.
And you’ll need to do it within the constraints of what you can afford.
Location, location, location
Before we unveil our super six Adelaide suburbs to buy, here’s the kind of data and key indicators you should be considering.
Sales data – Review sales data in the suburb you are analysing over the past 10 or so years.
You are looking for cycles or trends. Try to determine whether the suburb is on the rise and on the verge of a boom.
You’ll find some cold, hard numbers about every suburb in Adelaide here.
You can even pick the brains of local real estate agents to really try to ascertain whether you are onto a winner.
Supply and demand – You want to buy in an area where the demand for accomodation outweighs the supply, thus keeping prices and rental yields trending north.
Try to ascertain whether there is much construction underway or planned for the area because that could impact demand.
You also want to target an area with population growth which will increase demand, hence avoid suburbs with very high median ages.
Development – Research what plans the state government and council have for the suburb in question.
If money is being spent on infrastructure and amenities such as roads, shopping centres and parks, it’s a good bet that prices will rise as more people are drawn to the area.
Local attractions – People are attracted to an area by what it has to offer, whether it be views, close to the beach, parks with large recreation areas, retail precincts, great pubs or entertainment venues.
Housing jammed in behind a noise barrier close to a major freeway is clearly going to be much less attractive.
Consider neighbouring suburbs – You may have your heart set on a particular suburb but if it has already run hot in terms of market appreciation, you may have missed the boat.
Consider adjacent suburbs that have yet to boom. They very often follow suit.
Gentrification – There can be fantastic opportunities in lower-income suburbs that undergo gentrification which is the process of regeneration, attracting higher-income families and businesses.
Suburbs closer to the CBD tend to be prime targets so look closely for any that may have slipped through the net.
Check the main roads for new building developments.
If the retail scene and coffee shops are starting to buzz and younger families are moving into the area, you might be on a winner.
Here’s some top Adelaide suburbs to buy property
Beach suburbs sell like crazy.
The growth in Aldinga over the last decade has been significant.
It lies only 44 minutes from Adelaide on the Fleurieu Peninsula and boasts a beach safe for swimming as well as popular for surfing, scuba diving and snorkelling.
Median house price: $455,000
Rental house yield: 4.37%
Median unit price: $358,000
Rental unit yield: 5.22%
We’re sticking with the beaches.
Sellicks Beach is just another five minutes further south and the last available beachside development in the region.
Adorned with awesome clifftops to the south, Sellicks is a hit with swimmers and fishermen with the popular Victory Hotel commanding spectacular views from the hilltop.
Median house price: $560,000
Rental house yield: 4.05%
Still with the beachside suburbs but heading north, Semaphore remains one of Adelaide’s great opportunities.
Just 14km from the CBD, the beach and retail precincts are full of amenities and the area has an abundance of schools for young families.
A high rental yield at a price point which still offers growth makes Semaphore a winner.
Median house price: $857,000
Rental house yield: 3.2%
Median unit price: $355,000
Rental unit yield: 5.3%
Heading back south but slightly inland, Hackham is another suburb presenting great opportunity.
It lies just 15 minutes from the beach and the same trek to the heartland of one of South Australia’s most celebrated wine regions, McLaren Vale.
Interstate investors have already identified Hackham as a suburb of great potential with a very affordable price point.
Median house price: $380,000
Rental house yield: 5.3%
Median unit price: $280,000
Much closer to the city, Welland is one of those inner-city suburbs that is starting to really take off.
It’s not far from the Bowden redevelopment which has transformed that suburb.
Prices soared more than 33% in 2022 but the potential is there for much more growth as young families and working couples move in.
Median house price: $829,000
Rental house yield: 3.7%
Median unit price: $448,000
Rental unit yield: 4.9%
Heading for the hills, there is plenty to like about Blackwood.
Family friendly and in high demand with low vacancy rates, Blackwood has seen consistent growth of more than 7% in rental prices.
It’s still very affordable and looks to be a great long term investment.
Median house price: $804,000
Rental house yield: 4.0%
Median unit price: $395,000
Rental unit yield: 4.9%
Get support today
Buying property in Adelaide is one of the shrewdest moves you can make.
But before you take the plunge, it’s important to get some quality professional advice and the best possible loan deal for your goals.
The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.
Written by Hayley Walsh from Calder Finance Broking, for more information please visit the Calder Finance website. Please note that Calder Finance Broking Pty Ltd is a Corporate Credit Representative of BLSSA Pty Ltd ABN 69 117 651 760 ACL 391237.