Along with WA and Queensland, South Australia has been among the strongest performing property markets in Australia over the past couple of years for capital growth. For an investor looking for a cash flow positive property, these are where the highest rental yields are currently to be found.
South Australia property investing 2024
While much of the spotlight over the recent past has focused on Western Australia, property in SA has also gone from strength to strength. Per CoreLogic, from the onset of Covid to May 2024, the median property price in Adelaide rose 61%, only marginally less than Perth over the same period (62.6%). CoreLogic Research Director Tim Lawless says conditions on the ground suggest there could still be plenty of growth yet to come.
"The number of properties available for sale in Adelaide remains more than 40% below the five year average for [May]," he said.
"Inventory levels…remain well below average despite vendor activity lifting relative to [May '23]."
The two suburbs in Greater Adelaide with the biggest twelve month growth as of May were Playford (up 19.9%) and Salisbury (up 18.6%). Lloyd Edge, Founder and Buyers Agent at Aus Property Professionals, says the new Northern Connector motorway has boosted the appeal of Northern Adelaide.
"It [now] takes only 30 minutes to reach Adelaide CBD, which has influenced many young families to move to Playford," Mr Edge told InfoChoice Group.
Elsewhere, central Adelaide suburbs like Unley and Campbelltown also have seen major boosts to property values.
Property in regional SA has also made major gains. The median price is up 60.4% since the start of Covid, only just behind the growth regional WA and Queensland experienced. Barossa (up 18.9%) and the Yorke Peninsula (up 17.9%) saw the biggest growth to median property prices in the twelve months to May '24, and Mr Edge is predicting more results for this area in the rest of 2024.
"The Barossa Valley will be a strong performer," he said.
"There is a focus on tourism for both foodies and wine lovers, with over 150,000 visitors each year."
South Australia rental yields in 2024
As of March '24, these were the median sale prices, asking rents and rental yields in SA:
|
Median price |
Median asking rent |
Median rental yields |
|
|---|---|---|---|
|
Houses (Metro) |
$769,500 |
$550 |
3.9% |
|
Units (Metro) |
$509,050 |
$470 |
5.1% |
|
Houses (Country) |
$427,000 |
$380 |
4.9% |
|
Units (Country) |
$315,000 |
$295 |
5.1% |
Source: CoreLogic. Data reported to the period ending March '24. Median values account for sales transactions over three months.
Rental yields for houses in Adelaide are unspectacular, above only Sydney and Melbourne, and level with Brisbane. At a median price of $811,000, houses in Adelaide are relatively expensive compared to the likes of Perth ($770,000) and Hobart ($698,000), which can mean rental yields are comparatively low. For units, rental yields in Adelaide fare a little better, only behind Perth, Brisbane and Darwin.
Heading out to the regions and again, SA sits around the middle of the pack. Rental yields on both houses and units are stronger than regional Victoria, NSW and Tasmania, but well behind WA and the NT.
Highest rental yields in South Australia (Houses)
|
Ranking |
Suburb (Postcode) |
LGA |
Median Price |
Weekly Advertised Rent |
Gross Rental Yield |
|---|---|---|---|---|---|
|
1 |
Port Pirie West (5540) |
Port Pirie |
$177,500 |
$330 |
9.7% |
|
2 |
Peterborough (5422) |
Peterborough |
$150,000 |
$255 |
8.8% |
|
3 |
Solomontown (5540) |
Port Pirie |
$187,500 |
$305 |
8.5% |
|
4 |
Whyalla Norrie (5608) |
Whyalla |
$200,000 |
$300 |
7.8% |
|
5 |
Port Augusta (5700) |
Port Augusta |
$220,000 |
$320 |
7.6% |
|
6 |
Whyalla Stuart (5608) |
Whyalla |
$200,000 |
$280 |
7.3% |
|
7 |
Risdon Park (5540) |
Port Pirie |
$252,000 |
$350 |
7.2% |
|
8 |
Bordertown (5268) |
Tatiara |
$267,500 |
$370 |
7.2% |
|
9 |
Port Augusta West (5700) |
Port Augusta |
$260,000 |
$350 |
7.0% |
|
10 |
Roxby Downs (5725) |
Roxby Downs |
$285,000 |
$380 |
6.9% |
|
11 |
Stirling North (5710) |
Port Augusta |
$265,000 |
$350 |
6.9% |
|
12 |
Ceduna (5690) |
Ceduna |
$275,000 |
$350 |
6.6% |
|
13 |
Port Pirie South (5540) |
Port Pirie |
$291,250 |
$360 |
6.4% |
|
14 |
Whyalla Jenkins (5609) |
Whyalla |
$349,000 |
$420 |
6.3% |
|
15 |
Tailem Bend (5260) |
Coorong |
$297,500 |
$340 |
5.9% |
|
16 |
Renmark (5341) |
Renmark Paringa |
$335,000 |
$380 |
5.9% |
|
17 |
Whyalla Playford (5600) |
Whyalla |
$308,000 |
$345 |
5.8% |
|
18 |
Elizabeth South (5112) |
Playford |
$365,000 |
$400 |
5.7% |
|
19 |
Berri (5343) |
Berri Barmera |
$325,000 |
$350 |
5.6% |
|
20 |
Barmera (5345) |
Berri Barmera |
$325,000 |
$350 |
5.6% |
|
21 |
Eyre (5121) |
Playford |
$465,000 |
$500 |
5.6% |
|
22 |
Waikerie (5330) |
Loxton Waikerie |
$300,000 |
$315 |
5.5% |
|
23 |
Munno Para (5115) |
Playford |
$470,000 |
$490 |
5.4% |
|
24 |
Smithfield Plains (5114) |
Playford |
$425,000 |
$440 |
5.4% |
|
25 |
Loxton (5333) |
Loxton Waikerie |
$350,500 |
$360 |
5.3% |
Source: CoreLogic. Data reported to the period ending March '24. Median values account for sales transactions over 12 months.
As with most states, the areas with the highest rental yields are regional. Only four of the above suburbs (Elizabeth South, Eyre, Munno Para and Smithfield Plains) are in the Adelaide statistical division, despite the fact that more than 77% of the SA population live in the capital. Nine of the top ten suburbs by rental yields for houses are in the Northern region, which is effectively outback South Australia. Like the rest of the nation, the population in regional SA is sparse, with little clusters around industry centres. This is generally why rental yields are higher - the demand for property is more transient, with workers coming to and from the area depending on projects.
A good example is Port Pirie, where several of the above suburbs are to be found, including Port Pirie West at number one. Port Pirie is about 230 kms north of Adelaide on the coast. The city's economy is dominated by one of the world's largest smelters, producing lead, silver and zinc. It employs over 1,100 people including contractors, while the port itself is also the second busiest in SA. These workers need somewhere to live, so there's demand for housing, but this seemingly does not translate into demand to actually buy property, given the extremely low median prices. The average house in Port Pirie West for example is worth just $177,500 which is about 27% of the combined average for regional Australia.
Highest rental yields in South Australia (Units
|
Ranking |
Suburb (Postcode) |
LGA |
Median Price |
Weekly Advertised Rent |
Gross Rental Yield |
|---|---|---|---|---|---|
|
1 |
Roxby Downs (5725) |
Roxby Downs |
$130,000 |
$300 |
12.0% |
|
2 |
Whyalla (5600) |
Whyalla |
$179,000 |
$260 |
7.6% |
|
3 |
St Marys (5042) |
Mitcham |
$300,000 |
$395 |
6.8% |
|
4 |
Walkerville (5081) |
Walkerville |
$407,500 |
$520 |
6.6% |
|
5 |
Hawthorn (5062) |
Mitcham |
$317,500 |
$400 |
6.6% |
|
6 |
Adelaide (5000) |
Adelaide |
$440,000 |
$550 |
6.5% |
|
7 |
Tonsley (5042) |
Marion |
$443,000 |
$550 |
6.5% |
|
8 |
Lightsview (5085) |
Port Adelaide Enfield |
$460,000 |
$560 |
6.3% |
|
9 |
Salisbury East (5109) |
Salisbury |
$300,000 |
$360 |
6.2% |
|
10 |
Keswick (5035) |
West Torrens |
$345,000 |
$410 |
6.2% |
|
11 |
New Port (5015) |
Port Adelaide Enfield |
$363,250 |
$430 |
6.2% |
|
12 |
Croydon Park (5008) |
Port Adelaide Enfield |
$374,000 |
$440 |
6.1% |
|
13 |
Windsor Gardens (5087) |
Port Adelaide Enfield |
$418,000 |
$490 |
6.1% |
|
14 |
Newton (5074) |
Campbelltown (SA) |
$510,000 |
$597.50 |
6.1% |
|
15 |
Westbourne Park (5041) |
Mitcham |
$346,000 |
$405 |
6.1% |
|
16 |
Mawson Lakes (5095) |
Salisbury |
$415,000 |
$480 |
6.0% |
|
17 |
Pasadena (5042) |
Mitcham |
$361,000 |
$400 |
5.8% |
|
18 |
Salisbury (5108) |
Salisbury |
$325,000 |
$360 |
5.8% |
|
19 |
Brooklyn Park (5032) |
West Torrens |
$334,500 |
$370 |
5.8% |
|
20 |
Murray Bridge (5253) |
Murray Bridge |
$320,000 |
$350 |
5.7% |
|
21 |
Campbelltown (5074) |
Campbelltown (SA) |
$457,500 |
$500 |
5.7% |
|
22 |
Gilberton (5081) |
Walkerville |
$450,000 |
$490 |
5.7% |
|
23 |
Paradise (5075) |
Campbelltown (SA) |
$453,000 |
$490 |
5.6% |
|
24 |
Paralowie (5108) |
Salisbury |
$375,000 |
$400 |
5.5% |
|
25 |
Munno Para (5115) |
Playford |
$407,500 |
$430 |
5.5% |
Source: CoreLogic. Data reported to the period ending March '24. Median values account for sales transactions over 12 months.
Roxby Downs at the summit of this list immediately catches the eye. Not only do the yields dwarf the others in SA, but Roxby Downs also has the units with the third highest rental yields in the whole of Australia. Again, this is likely a by-product of the local industry. Roxby Downs is a township that was built in 1986 to support the Olympic Dam mine. It's remote, about 511 kms from Adelaide, and the population tends to be transient as mining employees come and go.
As is to be expected, Adelaide is much better represented for units. There are only three suburbs in the above list that aren't within the capital statistical division, which might have more to do with a lack of apartments in the regions than high yields in Adelaide.
Picture by Syed Hadi Naqvi
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