Soaring Adelaide's hotspots found close to CBD

Adelaide has often been overlooked as a hotspot for investment, however the past three years have really thrown the spotlight on the South Australian capital.

The latest CoreLogic reports confirm the Adelaide median house prices has now hit $768,000 – a massive 42 per cent increase from $540,000 just three years ago.

With prices continuing to rise across the suburbs, it’s worth having a closer look to see if further growth spots are awaiting new investors.

As any seasoned investor will know, people need amenities – things like transport hubs, health facilities, schools, shops and support services. Any areas property investors focus on need to have these established, with further infrastructure planned for the future or under construction.

Additionally, employment opportunities are important – and looking at that pipeline of major projects hones the focus to a few key areas.

Throwing together these factors point to a hub in the established north-eastern suburbs.

With employment in defence industries strong, combined with a myriad of other employment hubs in the north, there is strong demand for housing within 15km range from the CBD. This allows a modest commute to work further afield, but also an easy pathway to the city, quality school zones and health services. 

These suburbs can be accessed for just under the median house price and often still offer older homes on a larger block, which may suit a subdivision project in the future.

There is also a good diversity of older and newer builds in the area. This patch to look at includes Gilles Plains, Hillcrest and Holden Hill.

Flicking to the other side of the city, the southern suburbs have benefited from heavy infrastructure investment over the past 10-15 years and this has meant commuting is much easier, while the proximity to the beach still appeals to many.

In the south, you’ll need to come a little further out from the CBD to find a similar profile, around 25km from the city.

In this southern hub, similar to the north-east picks, there is a mix of housing, from low maintenance three to four bedroom properties, through to older properties on the larger blocks.

Suburbs to keep an investment eye on are Reynella, Reynella East and Hallet Cove.

New suburbs a problematic investment

There are substantial plans afoot for development in all quarters of the metropolitan area.

For investment purposes, it’s worth noting that these developments tend to be on the outer edge of the metropolitan area.

These will be large land releases and history would show that the prices tend to remain stable for some time in these areas while the development work is underway and the new suburbs find their groove. 

Likewise, there is still some delay in the infrastructure development that will support these areas.

This in turn may push housing demand closer to the city (within the areas identified above as target suburbs to watch).

Right across metropolitan Adelaide, property prices have always gone through periods of growth and stagnation, but very rarely have they dropped by any noticeable amount.

For those wanting more stability, Adelaide may just offer this balance.

Demand for rental properties in Adelaide is forecast to remain very strong as migration increases.

Generally, migrants will seek property close to the city and they will sacrifice property size for location, and public transport and employment are critical factors.

As Adelaide’s largest property management team, Turner Real Estate offers an Investor Support service to help investors identify growing areas and make smart long-term decisions.