Australians looking to buy or invest in property this year should look to the South Australian capital, one property expert believes.
Adelaide, which Yahoo Finance reported on in late 2019 as the nation’s most “underrated” and consistent property market, continues to hold the title, according to hotspotting.com.au managing director Terry Ryder.
“Adelaide is the nation’s most consistent market, even topping the steadiness of Canberra - and continues to be our most under-rated market,” Ryder said in a recent report.
The sales activity of sixty-two Adelaidean suburbs has been rising every quarter over the last three years. Sales activity is a key metric that Ryder uses to assess a property market’s popularity and attractiveness.
“Once again, the data shows that this consistent performance is occurring right across the Adelaide metropolitan area. There are 10 municipalities with at least three suburbs with rising sales momentum,” Ryder said.
“Affordable locations are the market leaders, boosted by the strong activity of first-home buyers.”
According to CoreLogic’s latest figures, Adelaide’s property prices saw an uptick of 0.9 per cent in the month of January 2021 alone, and in the 12 months to 31 January rose by 6.5 per cent.
The median house value in Adelaide is $473,170, making it Australia’s second-cheapest capital city property market after Darwin.
Top property hotspots in Adelaide
Adelaide’s most popular property hotspot is the Playford area in the northern suburbs, an attractive and affordable location for first-home buyers and investors on a budget.
Nine suburbs in this area have been dubbed a ‘rising suburb’ by Ryder, and homes in this suburb often fall below $250,000, with some less than $200,000.
A soon-to-be-opened motorway will open up opportunities for business and trade, and the revitalisation of a former car plant will add 1,600 jobs to the area.
“This is adding considerable impetus to this precinct, which has the state’s strongest population growth and some of the cheapest homes in capital city Australia,” said Ryder.
“The real estate market in this northern region of Adelaide is further characterised by low vacancy rates and high rental yields which are the highest among the major cities.”
Port Adelaide-Enfield, which is still considered affordable but is closer to Adelaide’s CBD, is also benefiting from several multi-billion dollar projects and defence contracts and a relocation of state government jobs.
Homes in this area typically fall between $400,000 and $500,000.
“The Port Adelaide-Enfield LGA is one of the leading markets in the nation for suburbs with rising buyer demand and prices responded in 2020,” said Ryder. Investors will be rewarded with strong demand from renters and vacancy rates below 1 per cent, he added.
The affluent area of Mitcham, 15km away from Adelaide’s CBD, also has strong appeal with “quintessential middle-market Adelaide”.
Homes here fall in the $500,000-700,000 range, and is in close proximity to the Flinders medical and education hub as well as the Tonsley innovation centre.
The area’s economy will soon be bolstered by a new $1.5 billion Flinders Village, expected to begin this year, as well as new transport infrastructure currently under construction.