5 Adelaide property hotspots showing no signs of slowing down

In a new document from Hotspotting, the Top 5 Adelaide Hotspot Report, that perspective is affirmed. Hotspotting director Terry Ryder acknowledged that Adelaide is “now classified as the nation’s second strongest economy” — spelling good news for property across the city.

He said Adelaide is now renowned for its consistently solid market performance, with the city maintaining a steady pace while other markets have faltered.

“There has been only a marginal deterioration in the overall position of the Adelaide market,” he outlined, with the number of suburbs classified as rising markets having decreased from the previous survey done in autumn, but the number of consistency markets has risen.

It’s a sentiment shared by Hotspotting general manager Tim Graham, who also noted that South Australia’s steadiness of performance “has become its trademark”.

“Adelaide, after two years — from mid-2020 to mid-2022 — in which sales activity kept rising and rising, is now dominated by locations where sales volumes are no longer increasing but have remained consistent at high levels,” he said.

What that means is that the city has “continued to deliver price growth at a time when larger cities have had falling prices”.

So, which Adelaide areas are being deemed as “hotspots” in June 2023?

City of Salisbury

Some of the highlights for the northern suburbs area of Adelaide include $4 billion-plus worth of Defence projects, a $1.9 billion Edinburgh Parks Precinct, the electrification of the Gawler train line, the $3 billion Riverlea Estate, and a master-planned community at Blakes Crossing.

According to Mr Ryder, the City of Salisbury has “defied the negative impacts of the pandemic through a construction boom made up of medium-scale projects, which are generating thousands of jobs”.

Add to that the development pipeline and the attraction of major companies to the area, and “all of this activity has buoyed the property market, with double-digit price growth continuing, and excellent long-term growth”.

He also explained that “high demand is causing extremely low vacancy rates — the highest vacancy rate among the 10 local postcodes is currently at or below 0.5 per cent”.

“Rents are rising, and rental yields are strong. Along with affordable prices, this attractive combination is providing opportunities for entry-level investors,” he said.

Suburbs in the City of Salisbury include Bolivar, Brahma Lodge, Burton, Cavan, Dry Creek, Direk, Edinburgh, Globe Derby Park, Greenfields, Gulfview Heights, Ingle Farm, Mawson Lakes, Parafield, Parafield Gardens, Paralowie, Para Hills, Para Hills West, Para Vista, Pooraka, Salisbury, Salisbury Downs, Salisbury East, Salisbury Heights, Salisbury North, Salisbury Park, Salisbury Plain, Salisbury South, St Kilda, Valley View, Walkley Heights, Waterloo Corner.

A number of City of Salisbury suburbs were recently named in Smart Property Investment’s Fast 50 2024 — including Salisbury, Paralowie and Para Hills. You can download the report here.

City of Charles Sturt

With $1.6 billion worth of urban renewal projects in the works, strong transport links, and proximity to Adelaide CBD and universities as selling points, Mr Graham said the suburbs within the City of Charles Sturt “are ideally positioned for further growth”.

That’s especially thanks to the recent launch of Adelaide BioMed City, a $3.8 billion project recognised as “one of the largest health and life sciences precincts in the southern hemisphere”.

“That reputation will impact real estate in the western Adelaide suburbs,” Mr Graham said.

Plus, with large-scale urban renewal in the pipeline across the council area, the suburbs “are well positioned to benefit from this”.

“While some of the LGA’s suburbs towards the coast have topped the $1 million median house price mark, there remains plenty of investment opportunity in less expensive houses and also units below $500,000,” he shared.

Suburbs within the City of Charles Sturt include Albert Park, Allenby Gardens, Athol Park, Beverley, Bowden, Brompton, Cheltenham, Croydon, Devon Park, Findon, Flinders Park, Fulham Gardens, Grange, Hendon, Henley Beach, Henley Beach South, Hindmarsh, Kidman Park, Kilkenny, Ovingham, Pennington, Renown Park, Ridleyton, Royal Park, Seaton, Semaphore Park, St Clair, Tennyson, Welland, West Beach, West Croydon, West Hindmarsh, West Lakes, West Lakes Shore, Woodville, Woodville North, Woodville Park, Woodville South and Woodville West.

Mt Barker district

Mt Barker’s $2.8 billion worth of new facilities make this historic town an ideal area that’s still close to the heart of the Adelaide CBD.

Its location in the heart of the Adelaide Hills — and its ties to tourism, short stays and wineries — also make it an ideal spot for buyers seeking out both affordability and a good lifestyle.

“With the median house price still below $600,000, many Adelaide home owners are making the tree change as they are able to buy new homes and come out ahead in the transition process,” Mr Ryder said.

He also noted that “investors are also seizing the opportunity to achieve not just capital growth but strong yields — the median is 4.6 per cent — while vacancy rates remain very low at 0.5 per cent”.

The district comprises a number of localities and suburbs, including Biggs Flat, Blakiston, Brukunga, Bugle Ranges, Chapel Hill, Dawesley, Echunga, Flaxley, Green Hills Range, Harrogate, Jupiter Creek, Kanmantoo, Littlehampton, Meadows, Mount Barker, Mount Barker Junction, Mount Barker Springs, Mount Barker Summit, Nairne, Paechtown, Paris Creek (part), Petwood, St Ives, Totness, and Wistow.

Mt Barker district also includes parts of Bradbury, Bridgewater, Bull Creek, Callington, Dorset Vale, Hahndorf, Hay Valley, Kangarilla, Kuitpo, Macclesfield, Mount Torrens, Mylor, Oakbank, Paris Creek, Prospect Hill, and Verdun.

City of Playford

The City of Playford is one of South Australia’s fastest-growing local government areas (LGAs) — and with proximity to the City of Salisbury, the entire northern corridor is booming.

According to Mr Graham, the area’s revitalised economy and its affordability are appealing to both first home buyers and investors alike.

With a $3 billion retail and lifestyle hub in the works in the master-planned community of Riverlea, it’s projects like these that “have added considerable impetus to the area”.

He also noted that the market is underpinned by a strong industrial sector and holds status as Adelaide’s transport and logistics leading sector.

The area also boasts “significant” job nodes, such as the Edinburgh Defence facility.

The City of Playford includes the suburbs and localities of Andrews Farm, Angle Vale, Bibaringa, Blakeview, Buckland Park, Craigmore, Davoren Park, Elizabeth, Elizabeth Downs, Elizabeth East, Elizabeth Grove, Elizabeth North, Elizabeth Park, Elizabeth South, Elizabeth West, Hillbank, MacDonald Park, Munno Para, Munno Para Downs, Munno Para West, One Tree Hill, Penfield, Penfield Gardens, Sampson Flat, Smithfield, Smithfield Plains, Virginia and Yattalunga.

The City of Playford also includes parts of Evanston Park, Gould Creek, Hillier, Humbug Scrub, Port Gawler, St Kilda, Uleybury and Waterloo Corner.

City of Mitcham

Low vacancies, affordable property, low unemployment, and high rates of tertiary qualification form the backbone of the City of Mitcham, which is reaping the rewards of investment into the Tonsley Innovation Hub ($1 billion), Flinders Village ($1.5 billion) and the Flinders Link ($140 million).

“The City of Mitcham is quintessential middle-market Adelaide,” according to Mr Ryder.

“Located within 15 kilometres of the Adelaide CBD, this LGA is an affluent area built around the health and education sectors. Median house prices are typically in the $700,000 to $900,000 range, although some suburbs are a little above $1 million,” he stated.

With Adelaide vacancies still extremely low, Mr Ryder also acknowledged that most Mitcham postcodes “have vacancy rates between 0.4 per cent and 1 per cent”.

The City of Mitcham includes the suburbs and localities of Bellevue Heights, Blackwood, Brown Hill Creek, Clapham, Clarence Gardens, Colonel Light Gardens, Craigburn Farm, Cumberland Park, Daw Park, Eden Hills, Glenalta, Hawthorn, Hawthorndene, Kingswood, Leawood Gardens (part), Lower Mitcham, Lynton, Melrose Park, Mitcham, Netherby, Panorama, Pasadena, Springfield, St Marys, Torrens Park, Urrbrae and Westbourne Park.

It also includes parts of Bedford Park, Belair, Coromandel Valley, Crafers West, Leawood Gardens and Upper Sturt.