The best performing suburbs across Adelaide have continued to be those in the north and coastal areas, as we predicted at the start of 2023.
With interest rate pressures and post-COVID migration catch-up, rental demand was at an all time high and this had a large impact on the property market. The suburbs on this list proved to have the strongest sustainable 12-month growth throughout Adelaide and the Greater Adelaide region. Many of these regions will continue to prosper in 2024, and the purpose of this list is to look at who performed well and more importantly why.
1. Largs North: +15% property value (4.0% rental yield)
2. Taperoo: +15% property value (4.5% rental yield)
These two suburbs showed the potential on offer in Adelaide's northern beaches. During and before 2023, land featured here was affordable and in close proximity to the beach and the city in a developing suburb. As the suburbs continue to develop, house prices will continue to rise along with buyer demand as the area is more drawn into the Adelaide residential fringe.
Larg's North Image credit: realestate.com
3. Salisbury: +15% property value (4.9% rental yield)
4. Salisbury Heights: +13% property value (4.3% rental yield)
Salisbury and surrounding suburbs saw sustained capital growth - demonstrating the general area is a continuing strong investment opportunity.
Salisbury Image credit: City of Salisbury (website)
5. Christie Downs: 15% (5.0% rental yield)
Christie Downs was the shining light of the South in terms of property growth and development. The suburb was at the forefront in capital growth and boasted a 5.0% average rental yield.
Christie Downs Interior - Image credit: Domain
6. West Lakes Shore: 13% (3.5% rental yield)
This was an interesting case of new developments in the West Lakes area at a high price where buyers sought close proximity to the beach in premium housing. In the long term this rise will cool off as all expensive suburbs are usually more complex in build and typically ownership retention is longer and lived-in by the owner.
Either way West Lakes Shore certainly proved to be a sought after area in 2023 seeing considerable growth.
7. Modbury Heights: 13% (4.4% rental yield)
8. Andrews Farm: 16% (5.3% rental yield)
9. Davoren Park: 15% (5.8% rental yield)
Modbury Heights, Davoren Park and Andrews Farm had 12-month capital growth performances that demonstrated the continuing potential the further north suburbs have in terms of strong growth prospects and affordable opportunities. Adelaide’s north continues to develop and expand, with the recent upgrade of the expressway further enabling quicker access to Adelaide City. Low house prices in these areas and entire areas being developed have locals and those from out of state flocking to these areas for a great deal for a very competitive cost. It’s no secret that these patterns will continue to be a safer bet in 2024.
Altogether 2023 was another strong year for the Adelaide property market and these suburbs were at the forefront. Developing northern suburbs continued to reign supreme in investment potential particularly when it comes to affordable housing with high average rental yields. Coastal areas have continued to experience high demand with buyers valuing ease of beach access. This has created further housing opportunities in cheaper coastal areas such as Largs Bay North and Taperoo located on the northern coastal fringe and Christies Downs in the south.
We forecast 2024 will be a stronger year for investing in Adelaide property. Construction supply will begin to further catch-up to the immense demand seen in the past year due to the stabilizing of migration post-COVID and Home Builder scheme projects finishing. This supports ease in building new homes addressing current buyer demand. Late 2024 will see a very buyer-friendly market. If you’re looking to invest in property this year, the timing is crucial and we at Property Investment Coaching can assist you in finding the right time with the best property that fits your budget.