Best investment suburbs in Adelaide for 2018

The median house price in the city sits at $433,354—a stark difference to Sydney’s $880,743.

Moreover, Adelaide’s rental yields are currently at 3.8 per cent for houses and 5 per cent for units, which are both higher than the capital city average of 3 per cent for houses and 3.9 per cent for units.

According to Propertyology’s Simon Pressley: “Adelaide, it's a beautiful city. It doesn't do apartments well but it probably doesn't need to because property is so affordable. Detached houses are so affordable.”

The low vacancy rate, currently at around 1.6 per cent, is also a good indicator of active investment activity in the area, which takes away the risks of oversupply.

Aside from that, property markets in Adelaide also benefit from the infrastructure boost in and around the city.

The value of infrastructure projects in the city currently sits at $1.9 billion, which is high above last year’s $572 million. It also marks the first time that the budget surpassed the billion dollar-mark since 2010.

Where to invest

What are the best suburbs in Adelaide to invest in? The suburbs in the northern and eastern parts of Adelaide are expected to experience continuous growth over the next three to five years.

Brompton, Hillcrest and Campbelltown offer great lifestyle through infrastructure developments, while Prospect and Kilburn thrive through great apartments at affordable prices.

Meanwhile, Norwood lets investors enjoy the benefits of being close to the CBD, while Magill offers the most affordable opportunities in eastern Adelaide.

Other affordable suburbs in the city include:

1. Elizabeth North and South, $169,000-$170,000 median sale price
2. Davoren Park, $175,000
3. Smithfield Plains, $187,000
4. Elizabeth Downs and Elizabeth Grove, $195,000-$205,000
5. Elizabeth East and Elizabeth Park, $208,500-$212,500
6. Smithfield, $222,500
7. Elizabeth Vale, $235,500

For investors looking to enjoy significant capital growth, Royal Park is among the top picks for 2018 due to a significant urban renewal that is currently underway.

The suburb is expected to benefit from a maturing property market that boasts good infrastructure, a controlled supply of new dwellings, a thriving jobs market and a culturally diverse and vibrant lifestyle—marks of a strong local economy.

Mount Barker also offers good opportunities for investors as the largest town in Adelaide Hills.

On top of good infrastructure, it also continues to show significant population growth over the past 10 years.

Meanwhile, Hectorville and Lightsview boast accessible amenities, including leisure centres, commercial districts, public service spaces, local schools, medical and shopping centres, making them ideal areas for sustainable living.

Their close proximity to the CBD also remains a factor that continues to attract first home buyers, professionals, young families and even budding investors.

In fact, in the past 15 years, Hectorville has enjoyed 66 per cent median price growth in housing units.

Overall, the housing market in Adelaide is expected to continue recording a sustainable pace of capital gains, just as it did over the last five years.

The National Australia Bank in March predicted a 1.9 per cent growth in house prices for 2018 and a 1.7 per cent growth in 2019.

According to NAB, Adelaide will see one of the most solid house price growth in the coming months, together with Melbourne, Hobart and Brisbane.

This information has been sourced from the National Australia Bank, CoreLogic, PRDnationwide, realestate.com.au, Rivergum Home and The Smart Property Investment website.