ADELAIDE PROPERTY INVESTMENT
Capital of South Australia and Australia’s fifth-largest city, Adelaide is often overlooked by property investors for its more glamorous eastern cousins. Yet, as a property market, it has much to offer the strategic investor. The city is enjoying an economic resurgence, powered by construction, defence and agriculture, with record levels of growth and employment. Adelaideans also enjoy a world-class, uncrowded lifestyle of sun, beaches, hills and wine. When combined with property affordability, major pockets of undersupply, strong rental yields and extremely low vacancy rates, the long-term equation for investors is compelling.
THINKING OF BUYING AN INVESTMENT PROPERTY IN ADELAIDE?
ADELAIDE PROPERTY INVESTMENT PERFORMANCE
HOUSES
6.2% P.A. (1992-2022)
HOUSES
RENTAL YIELD - 4.0%
UNITS
5.2% P.A. (1992-2022)
UNITS
RENTAL YIELD - 5.5%
Flying under the radar, Adelaide houses have enjoyed consistent performance on par with other Australian capital cities. Adelaide property investment performance has been characterised by steady growth with only mild downturns, most likely due to the lower levels of investor activity, which has also led to higher rental yields. As a more affordable market with better cashflow, Adelaide offers a lower price point for investors looking to acquire an investment grade property in a quality location. The market for detached houses is much more mature than apartments, and is our recommended property type for investors in Adelaide.
ADELAIDE PROPERTY INVESTMENT DRIVERS
CAPITAL CITY
Adelaide has enjoyed consistent investment performance thanks to its critical mass, international recognition and diverse public and private sectors.
GROWING ECONOMY
Adelaide’s economy is growing strongly on the back of major investment in defence, infrastructure, technology, resources agriculture and education.
LIVEABILITY
Ranked the 2nd most liveable city in the world in 2021, Adelaide boasts excellent public services, convenience, affordability and an enviable lifestyle.
HOUSING SUPPLY
Property supply in Adelaide is at decade lows, while rental vacancy rates are almost nil. The supply of new properties is unlikely to match demand for some time.
WHERE CAN I INVEST IN ADELAIDE?
INNER-CITY
Adelaide is a diverse city with a range of different property investment locations and options. As with most of Australia’s capital cities, Adelaide boasts blue-chip inner-ring suburbs where supply is limited and performance is consistently strong. These include Norwood, St Peters, Prospect, Unley and Hyde Park, all of which have reliably doubled in value every decade over the last 30 years.
BEACHES AND HILLS
Adelaide’s location, wedged as it is between the coast and the hills, has created numerous lifestyle locations in striking distance of the city. Beachside suburbs such as Glenelg, Brighton, Seacliff, Henley Beach and Semaphore all lie within 30 minutes of the CBD, while offering a relaxed array of cafes, restaurants and shopping. In the Adelaide Hills, suburbs such as Crafers, Aldgate, Stirling and Bridgewater are leafy, verdant areas filled with beautiful estates and easily accessible to the plains via the South-Eastern Freeway. Moving further out, the townships of Hahndorf, Mount Barker, Nairne and Littlehampton are more affordable, and still enjoy convenience, lifestyle and amenity.
Adelaide has a master-planned, spacious and green inner-city, with substantial amenity and good transport connections. It is close to beaches, hills and world-famous wine regions.
ADELAIDE - NORTH
Moving further out, Adelaide has a mix of suburbs that offer strong investment profiles and excellent affordability. In Adelaide’s north lies the Edinburgh Defence Precinct, a rapidly burgeoning area home to a major RAAF and Australian Army base and extensive defence industry. The Osborne Naval Shipyards, located 25km north-west of the CBD, are Australia’s most advanced shipbuilding facilities and will be responsible for Australia’s major future naval shipbuilding programs. The north has electrified rail running through its spine and will benefit from the construction of the North-South Corridor, a major motorway project. Housing in Adelaide’s north is very affordable compared to most capital city suburbs in Australia with median house prices in the 15-20km middle-ring ranging from $550,000-$650,000. One of our recommended pockets lies in Adelaide’s north-east in the Tea Tree Gully LGA, including suburbs such as Redwood Park, Banksia Park, Modbury Heights and Surrey Downs. This region, nestled between the city and the hills, offer a combination of affluence, convenience, amenity and limited housing supply.
ADELAIDE - SOUTH
Adelaide’s south is experiencing a confluence of positive investment factors, including major infrastructure developments, lifestyle improvements and housing scarcity. Together, they are driving powerful capital growth and rental increases, which has been slowed but not stopped despite aggressive interest rate rises. With constrained land supply due to the southern Adelaide Hills, Adelaide’s south has also benefited from significant transport infrastructure including the duplication of the Southern Expressway, and the electrification and extension of the Seaford Railway. The region also offers an attractive lifestyle proposition of beaches, hills and wineries, with easy access to great ocean beaches, the McLaren Vale wine region and the popular tourist locations of Encounter Bay and Kangaroo Island. Property remains affordable and rental returns are strong, and investors can choose from leafy hills communities including Aberfoyle Park, Happy Valley, Reynella and Sheidow Park, beachside suburbs such as Hallett Cove, Seaford, Moana and Aldinga.
Adelaide’s south brings together the best of the state: stunning coastlines, hills and wineries, as well as transport infrastructure, affordability and long-term property undersupply
HOW DO WE HELP ADELAIDE PROPERTY INVESTORS?
Aquila Property Investment offers a highly professional, independent and affordable alternative for those looking to invest in property in Adelaide. We'll help you:
1.
Independently determine where to invest and what to invest in, based on your personal objectives and financial situation.
2.
Locate and purchase a high-quality property in Adelaide at the best possible price using our expert buyers agency service.
3.
Assist you through the settlement process and provide ongoing advice to ensure your property is a successful, low-stress investment over the long-term.