Big things ahead for South Australia’s Aldinga Beach

The report and ranking combine the insights of a 14-strong investment expert panel and recent housing performance drawn from open source data and aim to give unparalleled insight into the Australian suburbs that are primed for future growth.

Based on the data from CoreLogic, Aldinga Beach is offering investors a number of key positive metrics. In the last 12 months alone, values in the area skyrocketed by 26.6 per cent, while investors, on average, are already enjoying gross rental yields of 4.2 per cent.

With market entry possible for around $500,000 and solid rental yields, property investment expert Margaret Lomas said investors should be “poised to enjoy growth off the back of increased demand at nearby Christies Beach”.

Just two years ago, Aldinga Beach noted a significant rise in buyer interest off the back of border closures and COVID-19-related changes to buying behaviour.

At that time, Raine & Horne general manager James Trimble said Aldinga Park’s rise in interest from buyers was an “enormous show of strength for the Adelaide market”.

The local market’s resilience had been on show as early as January to March 2020, when the Real Estate Institute of South Australia (REISA) noted the suburb was one of South Australia’s top-selling suburbs for the quarter.

Speaking of Aldinga Beach’s lack of available supply and booming popularity, South Australian Minister for Housing and Urban Development, Nick Champion, has acknowledged the Outer South as “one of the fastest-growing regions in the state, yet has one of the least amounts of greenfield land available.”

Aldinga Beach has also benefited from its nearness to Adelaide, with the South Australian capital having seen its established median house price climb 4.1 times higher than it sat 20 years ago, according to data crunched by Property Investment Professionals of Australia (PIPA) board member and University of Adelaide academic Peter Koulizos.

Based on data from the Australian Bureau of Statistics (ABS), the city saw the average house price grow from just $166,000 to $680,000 over the period, putting it in second place for capital gains, only behind Hobart, Tasmania.

While many property commentators have noted that recent rate hikes have had an impact on buyer demand, it’s not so much the case for Aldinga Beach, with Mr Koulizos noting South Australia’s buoyant market position. Commenting on South Australia as a whole, Mr Koulizos said the state “continues to go from strength to strength, relative to the rest of the nation”.

He sees plenty of interest for Adelaide and its surrounds coming from overseas migrants and international students now that borders have re-opened post-COVID-19, citing “its status as a regional area”.

This, according to the expert, “makes it easier for overseas migrants to gain permanent residency and [increases] its affordability relative to other major capital cities”.

Smart Property Investment’s managing editor, Phil Tarrant, has lauded Aldinga Beach’s inclusion in this year’s Fast 50, noting the suburb has most recently seen median quarterly growth of 6.30 per cent with house prices now sitting at $585,000 and investors achieving a median rent of $470 per week.

Part of the area’s appeal to date comes from the suburb’s proximity to Adelaide CBD (approximately 40 kilometres away) and adjacent access to renowned wine region, McLaren Vale.

Its future prospects are also promising, with the South Australian government making the decision in June 2022 to preserve a rail corridor for the potential future expansion of the Seaford Rail Line (which links to Adelaide) all the way through to Aldinga Beach.

Preliminary planning is already underway to determine what a future extension to the Adelaide transport corridor may look like.

This rail corridor will be supported by the addition of a 45-hectare master-planned community in Aldinga and the development of more than 800 dwellings comprising “a diverse range of housing types and price points,” according to Renewal SA.

It will also see the development of a new public school and related community facilities.

As of 1 May 2023, the Aldinga Landholding is on the market, presenting “a unique new opportunity for developers to deliver an exemplar master-planned community in an area with a critical need for more housing”.

To see what other suburbs made the Fast 50 2024, you can download the report here.