Adelaide’s north is home to the highest yielding suburbs across Australia’s capital cities, new data shows.
Househunters looking for an investment property with a promising rent return should consider buying in Adelaide’s north.
All but two suburbs on the list of top 10 highest yielding areas across Australia’s capitals are in the city’s northern region, according to latest realestate.com.au.
Elizabeth Downs, which has a median house price of $190,000, topped the list with a 7.9 per cent yield, followed by Elizabeth North ($158,000 median and 7.8 per cent yield) and Elizabeth South ($172,000 median and 7.7 per cent yield).
Davoren Park ($175,000 median and 7.4 per cent yield) and Smithfield Plains ($186,000 median and 7.3 per cent yield) rounded out the top five.
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In comparison, Greater Adelaide has a median house price of $480,000 with a rental yield of 4.23 per cent.
Chief economist at realestate.com.au Nerida Conisbee said with capital growth so uncertain in the current market place, many investors were focusing on rent returns.
“The areas that continue to see the highest yields in Australia are dominated by the Elizabeths in northern Adelaide,” she said.
“Even close proximity to an Elizabeth will give you a high yield.”
However, she warned high yielding suburbs often had both low capital growth and rental demand.
The Elizabeth Downs house at 18 McCullogh Street, which is currently being rented out for $250 per week, is on the market with a $199,000 to $219,000 price guide. Pic: realestate.com.au
But LJ Hooker Craigmore/Elizabeth investment manager Benjamin Watkins said they were often inundated with applications for rental properties in the northern suburbs.
With plenty of development over the past few years, he said more people were attracted to the area and there was a wide range of property on offer, from older homes to newer ones.
“We’ve always had strong competition,” he said.
“And that area covers so many demographics, from affordable to middle class (properties).”
As an investor in the area himself, Mr Watkins believed it was a good area to buy an investment property.
HIGHEST YIELDING SUBURBS IN AUSTRALIAN CAPITAL CITIES
(Suburbs, state, median house price, yield)
1. Elizabeth Downs, SA – $190,000, 7.9%
2. Elizabeth North, SA – $158,000, 7.8%
3. Elizabeth South, SA – $172,000, 7.7%
4. Davoren Park, SA – $175,000, 7.4%
5. Smithfield Plains, SA – $186,000, 7.3%
6. Elizabeth Park, SA – $201,500, 7.2%
7. Elizabeth East, SA – $212,500, 7.2%
8. Zuccoli, NT – $225,000, 7.1%
9. Bridgewater, TAS – $285,000, 6.9%
10. Elizabeth Grove, SA – $225,000, 6.8%
(Source: realestate.com.au)
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