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Where the rental hotspots are in this city slated for growth
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Where the rental hotspots are in this city slated for growth

Where the rental hotspots are in this city slated for growth

by Sasha Karen | May 09, 2019 | 1 minute read

Investors looking to find cash flow success in one capital city market should look towards the north, according to the general manager of a state arm of one big bank.

Adelaide
May 09, 2019

Libby Greenwood, NAB’s acting South Australia general manager, retail, identified the north of Adelaide as a rental return hotspot for property investors.

“South Australia’s top five metropolitan suburbs for rental yield are more than 20 kilometres from the city,” Ms Greenwood said.

Both Elizabeth South and SalisburySalisbury, SA Salisbury, QLD were providing investors with returns of 8 per cent rental yields and were the highest out of all of South Australia, according to REA Group data.

Following this was Davoren Park at 7.4 per cent, Elizabeth Downs at 7.3 per cent and Elizabeth North at 7.3 per cent.

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“Suburbs in the City of Playford and City of Salisbury are home to a broad demographic range of residents – the young and old as well as couples, family and retirees,” Ms Greenwood said.

“Investors can expect strong future rental demand too. The City of Playford has forecast its population to grow by nearly 40 percent in the next 20 years,” Ms Greenwood continued, saying the top five Adelaide suburbs also had low price points.

“Median prices for three-bedroom houses in Elizabeth South, Elizabeth Downs, Elizabeth North and Davoren Park are all less than $180,000, which is less than half the state’s average metropolitan median house price,” she said.

Regional South Australia also contains high returns, with Peterborough offering returns of 10.8 per cent, followed by Whyalla Stuart at 9.1 per cent, Port Augusta at 8.6 per cent, Bordertown at 8.3 per cent and Loxton at 8.2 per cent, REA Group data showed.

South Australia is expected to see the strongest price growth for the next 12 months out of all the states and territories, according to experts and NAB economists, as published previously.

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