Five regional centres earmarked for growth in 2018
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.
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.
“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.
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.
Median house price: $204,500
Change in median price — 12 months: 22.5 per cent
Median rent: $250
Rental yield: 6.4%
Median house price: $335,000
Change in median price — 12 months: 4.7%
Median rent: $310
Rental yield: 4.8%
Median house price: $308,750
Change in median price — 12 months: -0.4%
Median rent: $300
Rental yield: 5.1%
Median house price: $362,500
Change in median price — 12 months: 2.2%
Median rent: $330
Rental yield: 4.7%
Median house price: $254,750
Change in median price — 12 months: 1.9%
Median rent: $265
Rental yield: 5.4%