The city of churches has provided for property owners in recent times, and the wins are forecast to keep coming next year despite rising affordability challenges.
“Since the onset of COVID in March of 2020, Adelaide home values are up almost 51%,” CoreLogic research director Tim Lawless said on the release of the property data group’s December market update.
“While this is probably good news for homeowners, affordability pressures are becoming more challenging across the city.”
The latest affordability metrics saw Adelaide boasting the second-most unaffordable housing market of the nation’s capital cities.
Despite that, however, the immediate future looks bright for the South Australian capital.
NAB is forecasting Adelaide home values to be a front runner next year, rising 6.2% over the coming 12 months.
That would see it performing in line with dwelling prices in Perth and just behind those of Brisbane – tipped to rise 6.5% in 2024.
But which Adelaide suburbs stand out as potential growth hubs? Here’s where the experts will be keeping a close eye in the new year.
Median price data sourced via Realestate.com.au and is accurate as at December 2023.
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Salisbury North, 5108
For buyers looking for affordability or taking their first step onto the property ladder, Salisbury North could provide notable opportunities.
“It is very much a family suburb with lots of amenities, green space, and recreation parks,” PRD chief economist Diaswati Mardiasmo said.
Landmarks found in Salisbury North include RAAF Base Edinburgh, the University of South Australia’s Mawson Lakes campus, and the Adelaide Planetarium.
Salisbury North was one of South Australia’s most affordable and liveable suburbs for both house and apartment dwellers in the second half of 2023, according to PRD’s latest Affordable and Liveable Property Guide.
The guide considers a multitude of factors such as median property price, investment potential, and upcoming developments to uncover some of Australia's hidden gems.
- Median price: $430,000 for houses, median price for units not available
- Median weekly rent: $430 for houses, $349 for units
Richmond, Marleston & Underdale
Those looking for an inner city abode might turn their attention to Richmond, Marleston, or Underdale.
That’s according to Peter Koulizos, program director of the master of property at University of Adelaide and PIPA board member.
The three suburbs are located mere kilometres west of the city centre, with Richmond located a quick walk to the action.
Both Richmond and Marlestone offer opportunities for those willing to redevelop real estate, thanks in part to favourable zoning.
Meanwhile, handy buyers might be interested in adding value by renovating the post-war homes scattered through Richmond or the character homes within Underdale.
For beach goers, Mr Koulizos points out that Underdale offers direct beach access via Henley Beach Road.
However, he warns astute buyers to beware of Marlestone’s industrial and employment zones.
Richmond, 5033
- Median price: $812,500 for houses, $368,250 for units
- Median weekly rent: $570 for houses, $375 for units
Marleston, 5033
- Median price: $808,000 for houses, $414,750 for units
- Median weekly rent: $592 for houses, $360 for units
Underdale, 5032
- Median price: $880,000 for houses, $525,555 for units
- Median weekly rent: $600 for houses, $430 for units
Kilkenny, 5009
Kilkenny is another suburb close to the city that Mr Koulizos believes could be worth watching in 2024.
Just a few kilometres north west of the CBD, he says Kilkenny is “at the early stages of the gentrification process”.
- Median price: $668,000 for houses, data for units unavailable
- Median weekly rent: $500 for houses, data for units unavailable
Osborne, 5017
Looking further out of the city, Dr Mardiasmo points to Osborne as another suburb that might be worth considering in 2024.
Osborne is around 21 kilometres out from the Adelaide CBD, near the tip of the LeFevre Peninsula.
“Its affordability and close proximity to the water are its best features,” Dr Mardiasmo said.
“It has a reputation for being a very safe suburb for families.”
- Median price: $649,000 for houses, data for units unavailable
- Median weekly rent: $497 for houses, data for units unavailable
Woodville North, 5012
Also potentially worth considering is Woodville North.
Next door to Kilkenny, the suburb is easily commutable and offers a relaxed lifestyle for families.
“Woodville North is very convenient for families, largely because of the local schools,” Dr Mardiasmo said.
“It's also not too far of a drive from the beach.”
While the suburb itself is still relatively affordable, Dr Mardiasmo warns that units in the area can be that bit pricier.
- Median price: $670,000 for houses, $388,000 for units
- Median weekly rent: $540 for houses, $430 for units
West Lakes Shore, 5020
For those dreaming of the beach-side lifestyle, West Lake Shore might provide a notable opportunity.
Located to the north-west of the city, the “relatively cheap beachside suburb”, as per to Mr Koulizos, is in the “early stages of urban regeneration”.
“In many cases, the land alone is worth more than the 1970s house and land,” the expert said.
- Median price: $960,000 for houses, data for units unavailable
- Median weekly rent: $697 for houses, $510 for units
Seaford, 5169
If the ocean is calling you, but not your wallet, Seaford might be more up your alley.
The suburb is around 35 kilometres from Adelaide city, but just a hop, skip, and a jump from picturesque McLaren Vale.
It also has easy access to the city, with a train line running through it, and offers a lower entry point than the likes of West Lakes Shore, Mr Koulizos notes.
Neighbouring prime suburbs include Moana, Port Noarlunga, and Port Noarlunga South.
- Median price: $650,000 for houses, data for units unavailable
- Median weekly rent: $520 for houses, data for units unavailable
Regional bonus: Ardrossan, 5571
Finally, for those who aren’t city slickers, or who are willing to look past the capital when investing, regional Ardrossan, located on the Yorke Peninsula, could be worth a look.
The supply of housing in Ardrossan is “very limited”, Mr Koulizos says.
Meanwhile, copper miner Rex Minerals is expected to kick off construction of its Hillside Mine in the area shortly.
Thus, astute investors might do well to keep an eye on the South Australian township.
- Median price: $360,000 for houses, data for units unavailable
- Median weekly rent: data unavailable
Image by Michael Obeysekera onn Unsplash.
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