It’s no secret that the Adelaide property market has seen significant growth during the COVID-19 pandemic, and this growth has seen new areas of the city become hotspots for investors.
The good news is that if these trends are to continue (and it wouldn’t be surprising if they did, there’s no signs of this growth slowing) then you’ll likely get a good return on most residential property investments. You’ll need to be quick however, as properties aren’t staying on the market for very long.
Rapid growth in the eastern suburbs
The eastern and inner-southern suburbs continue to assert themselves as the epicentre for this rapid growth. The leafy eastern suburbs remain a great investment for anyone that can afford it, with almost all areas growing in excess of 10%, or 20% when annualised.
Seaside suburbs continue to rise
Those looking for a sea-change are spoilt for choice, with the Grange and Glenelg North areas recording median sale prices around $1,020,000. Many may argue the lifestyle on offer is worth well in excess of that price, with growth circa 20% ensuring those already in the market are well looked after.
Affordable investments in outer-south areas
The outer-south has accelerated rapidly in the last 6 months, with Seaford and Christies Beach becoming an affordable area to start (or continue) your journey as a property investor. Seaford to the south offers a more affordable price point circa $455,000 with growth around the 31% mark. The sea-change you might be looking for has options no matter your budget.
Subdividing as an investment option
Subdivision is one way to unlock value in your property, with the option to build on the resultant allotments potentially adding additional profit – although not all subdivisions yield profits.
The areas which developable properties are the most widespread include the north-eastern suburbs around Modbury, Golden Grove and Salisbury. There’s also a very lucrative suburb just east of Christies Beach. The combination of generous land sizes and accommodating planning rules allows for many (but not all) to subdivide.
If your house is older in age and not in the best condition, subdividing may be a great way to extract the maximum value from your property.
Check out our map below which shows the number of subdividable properties across metropolitan Adelaide, as per the Planning & Design Code, accurate October 2021.
Download the full People’s Choice Housing Update – Spring 2021 report here.