Beautiful Town

A view of the beautiful city of Port Lincoln.

BEYOND the bright lights, traffic jams and crowded buses of Adelaide CBD, five regional centres have been earmarked as investor hot spots for 2018.

Recording median house prices well below the Adelaide median of $450,000, Port Augusta, Gawler, Port Lincoln, Onkaparinga and Mount Gambier, have been named growth locations by market research firm Propertyology.

All five council areas recorded strong price growth over the last 12 months with investors pocketing on average 5.3 per cent in rental returns.

This three-bedroom, two-bathroom home at 3 Cobbles

This three-bedroom, two-bathroom home at 3 Cobblestone Court, Mount Gambier is both affordable and charming. It is for sale with Key 2 Sale Real Estate and has a price guide of $395,000 to $425,000.

Port Augusta recorded the biggest growth over the past year, at 22.5 per cent, with the average house now selling for $204,500.

Propertyology managing director, Simon Pressley, said the analysis was based on criteria such as affordability, economic diversity, essential infrastructure, lifestyle and increased demand for housing, with each of the five locations showing the right ingredients for stellar returns in the foreseeable future.

Just move in or use as an investment. This three-b

Just move in or use as an investment. This three-bedroom home at 32 Cranston St, Port Lincoln is for sale with Kemp Real Estate and has a price tag of $239,000.

“Port Augusta, where Tesla tech billionaire Elon Musk’s recently developed the world’s largest lithium battery, is a property market that’s well worth keeping a close eye on,” he said.

“With new solar and wind farm projects planned and the recent announcement by BHP to increase production at Olympic Dam, the region’s economy has a lot to look forward to. “When one considers that a typical house in Port Augusta only costs around $200,000, there’s a big upside.”

Gawler, which has a median house price of $335,000, meanwhile, recorded a steady growth of 4.7 per cent over the past years, while Onkaparinga — with a median house price of $360,000 — recorded a 12-month growth of 2.2 per cent.

This two-bedroom cottage at 93 Flinders Tce, Port

This two-bedroom cottage at 93 Flinders Tce, Port Augusta is for sale with Port Augusta First National and has a price guide of $130,000.

While plenty of suburbs on the outskirts of Adelaide offer good yields for investors, Mr Pressely said research suggested that capital growth potential was curtailed in these areas due to fewer employment opportunities, lower market confidence, and extra housing supply from new land releases.

“On the other hand, segments of regional South Australia have an improving economic outlook and, combined with more controlled housing supply, are likely to result in property markets performing better,” he said.

MARKET INSIGHT

source: CoreLogic

PORT AUGUSTA

Median house price: $204,500

Change in median price — 12 months: 22.5 per cent

Median rent: $250

Rental yield: 6.4%

GAWLER

Median house price: $335,000

Change in median price — 12 months: 4.7%

Median rent: $310

Rental yield: 4.8%

PORT LINCOLN

Median house price: $308,750

Change in median price — 12 months: -0.4%

Median rent: $300

Rental yield: 5.1%

ONKAPARINGA

Median house price: $362,500

Change in median price — 12 months: 2.2%

Median rent: $330

Rental yield: 4.7%

MOUNT GAMBIER

Median house price: $254,750

Change in median price — 12 months: 1.9%

Median rent: $265

Rental yield: 5.4%