The fairy tale of the year! The end of 2020 looked great for the Adelaide property market despite gloomy forecasts. Adelaide suburbs’ growth was gradual but consistent, with a 6% increase in house price growth over the last 12 months, according to Domain Property Prices.
Even units, which lost in favour across property markets in Australia, seemed to hold out in Adelaide. A 13.5% growth in unit prices was the highest in 12 years, beating all the other capital cities.
The keen interest tenants now show for regional areas due to the regional property market trend in Australia has helped bring a number of suburbs that used to be off the radar to the spotlight now. So, the question is: What are the best suburbs to invest in in Adelaide in 2021?
We've seen what the reliable sources are saying about the Adelaide property market to find the suburbs that you should have on your radar for 2021. Here we explore the suburbs’ capital growth, its proximity to the CBD and lifestyle appeal. We also consider the property prices to help you understand how the property market in Adelaide is.
These suburbs are in no particular order, and we fully recognise that there are other strong options we haven't included on our list.
⭐The Adelaide suburb to invest in if: capital requirements are not an issue and you’re interested in very high growth rates.
Unprecedented growth in unprecedented times! Tennyson is showing immense capital growth rates at the moment and it's where tenants dream of living. It's a suburb that stretches along the Adelaide coast, only 11km from the Adelaide CBD.
A vacancy rate of 0.6% combined with a 5-year compound growth rate of 12.3% gives you the whole lot - a safe rental income and tremendous capital growth.
As you'd expect, it comes at a cost. The median house price of a property is $1.5 million at the moment, and with all the current hype you can expect to bid up other interested buyers.
To put the growth of this Adelaide suburb into context: If you bought a $1.4 million house last year, it would now be worth $1.6 million!
This Adelaide growth suburb will only continue to perform on the Adelaide property market, and the only question remaining is if you can actually get your hands on a property in Tennyson.
- Median house price Tennyson: $1,575,000 for houses
- Average rental yield Tennyson: 2.3% for houses and 5.6% for units
- 5-year compound growth rate for Tennyson: 12.3% for houses and -1.8% for units
Walkerville looks like a great option on the Adelaide property market without too much hype. It's an affluent suburb and prices are definitely on the higher-end, but compared to a suburb like Tennyson, you're much more likely to actually get your hands on a rental in this growth suburb.
Walkerville has all the amenities. It's only 5km away from the CBD, a number of community and sporting clubs exist within a 1 km radius, and a supermarket, restaurants and fitness centre is within 5 minutes.
All of this means vacancy rates are as low as 1% in the suburb.
Featured on RealEstate.com.au’s list of top 10 growth suburbs in Adelaide, it's definitely in demand for renters and buyers alike. It attracted 5,778 average views in 2021, a 128% increase since 2019, likely a combination of more interest in spacious houses, and the regional trend in the Australian property market.
It's not as hot as its more popular counterpart, Tennyson, but it's still worthy of being on your radar if this is your kind of property market, and you can't get your hands on anything in a place like Tennyson.
- Median house price Walkerville: $1,410,000 for houses, $450,000 for units
- Average rental yield Walkerville: 1.9% for houses and 4.4% for units
- 5 year compound growth rate for Walkerville: 8.8% for houses and 3.6% for units
Located 5 km away from the CBD, Glenunga is a tranquil Adelaide growth suburb. It offers easy access to cafes, pubs, restaurants and the Burnside Village shopping centre.
This suburb is ideal for tenants who care about proximity to reputed public schools, child care facilities, play areas and everything a family needs, so you won't have a problem finding a reliable tenant to call your rental home.
Despite the 7.1% 5-year growth rate for houses, the unit figures are minus, which really isn't much of a surprise seeing how many other suburbs across different states mirror this trend. The demand for this suburb is more than twice that of Adelaide’s average with 3,268 views per property and a 1.0% vacancy rate, so it's a safe all-rounder, though a bit pricy.
- Median house price Glenunga : $1,200,000 for houses, $405,000 for units
- Average rental yield Glenunga: 2.3% for houses and 4.4% for units
- 5 year compound growth rate for Glenunga: 7.1% for houses and -0.7% for units
⭐The Adelaide suburb to invest in if: you're looking for an affordable all-rounder.
With house prices falling in the mid-range of $730,000 with a 7.1% 5-year growth rate, Semaphore is an ideal investment if high-capital commitments are not your cup of tea right now.
This residential suburb is located 14 km from the CBD. But it’s pretty easy to get errands done here on foot, which is likely to take some brownie points from your tenants. This is quite a leafy suburb with the library, club and community centre less than a km away.
This means it’s a great suburb for those who care for connection in their neighbourhood. With the coast just around the corner and a handful of antique shops around, this suburb serves as a tourist attraction, too.
It's one of the best suburbs to invest in Adelaide for 2021 if you're looking for a good all-rounder that is fairly affordable, but still boasts healthy growth rates and rental yields.
- Median house price Semaphore: $730,000 for houses, $325,000 for units
- Average rental yield Semaphore: 3.1% for houses and 5.0% for units
- 5-year compound growth rate for Semaphore: 7.1% for houses and 1.9% for units
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⭐The Adelaide suburb to invest in if: you're not completely sold on the regional property market trend and you'd rather buy something closer to the CBD.
No no, this Adelaide suburb is indeed called Prospect! And it's a good one!
A fusion of historical architecture and contemporary houses co-exists harmoniously in this residential suburb, just 5 km away from the CBD. The funds tuned towards Prospect’s infrastructure has nudged this into the list of top suburbs to invest in Adelaide.
House prices are in the mid-range. The 5-year growth rate is at 5.7%, and vacancy rates have fallen to 0.6% in January 2021. Not much more a property investor could ask of a rental in the current property market.
This community-oriented neighbourhood boasts convenience and easy access to amenities and is pretty popular with tenants.
It's not the hottest suburb on the Adelaide property market right now, but if you're trying to avoid putting all your eggs in the regional property market basket, it's a great option.
- Median house price Prospect: $750,000 for houses, $380,000 for units
- Average rental yield Prospect: 2.9% for houses and 4.8% for units
- 5-year compound growth rate for Prospect: 5.7% for houses and 4.4% for units
Blackwood is about 14km from the CBD, and is rocking the lowest vacancy rates on this list of 0.1%.
The YOY 14% increase in rental prices and a 4.59% rental yield only means good news for potential property investors eyeing Blackwood this year. This growth suburb is family-friendly with schools and daycare centres less than 500 metres away.
It's a good and affordable option and you can expect modest returns on your investment. Good to keep your eye on this Adelaide growth suburb in case a great deal pops up.
- Median house price Blackwood: $653,000 for houses, $365,000 for units
- Average rental yield Blackwood: 3.4% for houses and 4.4% for units
- 5 year compound growth rate for Blackwood: 5.5% for houses and 4.0% for units
7. Largs Bay
⭐The Adelaide suburb to invest in if: you're looking to positively gear your property.
According to RealEstate.com.au, Largs Bay property views rose by 86% between 2019 and 2020. Situated 16 km northwest of Adelaide CBD, Largs Bay is a quiet, family-friendly suburb near the coast, just a quick drive from Semaphore Park Beach.
Its vacancy rate has increased to 0.7% in January 2021 since its 10-year lowest in August 2020. Cafes, fitness centres, and supermarkets are less than 1km away.
However, Largs Bay’s average rental yield is the highest among our list at 3.8% for houses and has the lowest house prices compared to the rest of the suburbs given here, so if you're looking to positively gear your property it's a great option.
- Median house price Largs Bay: $619,000 for houses
- Average rental yield Largs Bay: 3.8% for houses and 5.7% for units
- 5 year compound growth rate for Largs Bay: 4.4% for houses and 0.2% for units
Honorable mention: Port Elliot
⭐The Adelaide suburb to invest in if: you’re after low-capital investment holiday rentals.
In the property market in Australia for 2021, we think you should be open to broadening your horizons. Port Elliot was featured at RealEstate.com.au’s best suburbs to invest in South Australia and with good reason.
It's shown a 9.8% growth over the past year and a 6.2% 5-year growth rate for houses. Pretty good when you could find houses for as low as $487,000 at Port Elliot.
This is a mid-range income neighbourhood with an average income of $650 per week. The closest restaurant, cafe and pub is 2 km away although its coastal vibe and picturesque locations make it a perfect holiday destination.
While it's not in Adelaide, we still thought it deserved a mention for the South Australian property market.
- Median house price Port Elliot: $577,500 for houses
- Average rental yield Port Elliot: 2.9% for houses and 4.6% for units
- 5 year compound growth rate for Port Elliot: 6.2% for houses and -10.5% for units
Final thoughts on which suburbs to invest in Adelaide for 2021
Adelaide has held strong through the COVID-19 property market dip and should continue to do so. Adelaide property market news indicates that this city was least vulnerable in Australia to changes in international migration and investment activities, which has helped it stay strong.
Meanwhile, ever since tenants began to appreciate the value of spacious homes, the demand for units fell. This trend is likely to make houses in regional suburbs a hot pursuit for the foreseeable future. That’s likely why Adelaide's property market forecasts house prices to shoot up by 5-8% in 2021, according to Property Update.
Overall, property investors can enjoy high capital growth rates with a spike in interest in Adelaide properties, thanks to its affordability and lifestyle appeal.
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The entire market was not considered in selecting the above products.