Best SA suburbs for investment properties
Are you looking to invest in a rental property in South Australia? There’s no denying the market is attractive for investors at the moment, with property prices continuing to hit new highs.
The hardest part for many people is deciding what suburb to buy in, especially when the market is booming.
A good place to start is by looking at suburbs that record high rental yields, consistent rental growth, and low vacancy rates.
Using CoreLogic’s October 2021 – Top Rental Report, we’ve compiled a list of the top 10 SA suburbs where houses or units have an estimated gross rental yield of 5% or more per year, consistent growth and vacancy rates of less than 3%.
Take a look at which suburbs and towns topped the list.
Ranking | Suburb | Property type | Annual gross rental yield | Median rent | Rental vacancy | Change in median rent |
1 | Whyalla Norrie, 5608 | Houses | 7.9% | $250 week | 2.7% | 16.3% |
2 | Elizabeth Downs, 5113 | Houses | 7.3% | $280 week | 2.7% | 11.6% |
3 | Davoren Park, 5113 | Houses | 7.3% | $275 week | 2.6% | 5.8% |
4 | Salisbury, 5108 | Units | 7.2% | $255 week | 2.3% | 2.0% |
5 | Mawson Lakes, 5095 | Units | 6.5% | $360 week | 2.4% | 5.9% |
6 | Klemzig, 5087 | Units | 6.5% | $310 week | 1.5% | 6.9% |
7 | Salisbury North, 5108 | Houses | 6.4% | $310 week | 1.7% | 3.3% |
8 | Mount Gambier, 5290 | Units | 6.3% | $240 week | 2.5% | 9.1% |
9 | Elizabeth East, 5112 | Houses | 6.2% | $300 week | 2.6% | 13.2% |
10 | Morphett Vale, 5162 | Units | 6.2% | $310 week | 1.6% | 10.7% |
Whyalla Norrie, around a four-hour drive from Adelaide, takes the title of highest house rental returns with a yield of 7.9%. The median weekly rent is $250 and the annual change in median rent is 16.3%.
In the northern suburbs of Adelaide, Salisbury has the highest rental yield for units at 7.2% and a median weekly rent of $255. However, the annual change in median rent is only 2.0%, whereas both Mawson Lakes and Klemzig have had a larger change in median rent at 5.9% (Mawson Lakes) and 6.9% (Klemzig).
Further research
Like with all investing, it’s important you do your own research like visiting the area, understanding local development and infrastructure (access to public transport, job market and crime rate etc.). As well as looking at your own needs, goals and financial circumstances. We’re here to help.
If you’re ready to buy an investment property in South Australia, you can apply for a home loan online, or if you’d like to chat we’re more than happy to walk you through the process and find the right option for you. Make an appointment with one of our friendly Mobile Lending Managers who can come to your home or office at a time that suits you. You can also visit us at 400 King William Street, Adelaide or call us on (08) 8202 7777 between 8am – 8pm weekdays or 8am – 2pm Saturdays.
INFORMATION YOU SHOULD KNOW
Rental yield: The CoreLogic automated valuation model (AVM) rental yield is based on the annualised rent (Median Asking Rent x 52 weeks), divided by the median AVM of those properties advertised for rent.
Median rent: The middle value of advertised weekly rents captured by CoreLogic during the 12-month period.
Rental vacancy: Percentage of days the average listed property is vacant over the last 12 months.
Annual change in value: The difference between the current median value and the median value one year prior.
This article is intended as general information only and has been prepared without taking into account the personal financial situation, objectives or needs of the reader. Before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs.
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