Buying an investment property is a major undertaking. However, if done correctly in terms of location, timing and research, it can be a wise move that positions you for long-term success. Adelaide’s housing market has historically been strong, with median prices rising steadily for both houses and units. The city is a great place to live, work and raise a family, which is reflected in its strong population growth.
If you are considering investing in Adelaide real estate, here are some key reasons to do so.
Affordable housing
Adelaide currently has a median house price of $760,000, with a median unit and apartment price of $450,000, which is significantly lower than the median house price in Melbourne ($1,200,000) and Sydney ($1,245,000). This significant difference in price means that Adelaide is a much more affordable option for investors, particularly those looking to enter the market. The city offers a wide range of property types, from apartments and units to large family homes in suburbs that can accommodate a variety of lifestyles and budgets.
Strong economic growth
Adelaide’s economy has grown steadily in recent years, thanks in part to state government investments in infrastructure and construction projects. Even in difficult economic times, Adelaide’s city economy has been a consistent performer. Adelaide is South Australia’s economic engine, accounting for nearly 20% of the state’s economic output and consistently growing. The investment in improving Adelaide’s infrastructure has created and supported local jobs and has been a major contributor to the city’s economic stability. This economic growth is expected to continue, bolstering the housing market.
Lifestyle
Adelaide has a wonderful way of life, with plenty of green space, beaches and cultural attractions. The city is ideal for families, professionals and retirees alike, with the suburbs and CBD also being well-connected, with excellent public transportation options. The cost of living in Adelaide is relatively low when compared to other major cities, with costs such as housing, food and transportation all being relatively low. This makes Adelaide an appealing option for those seeking a more affordable way of life and makes real estate investing a safe and profitable option.
Safe investment
Adelaide’s property market has a long history of being stable and secure, making it an appealing option for investors. The city has a low vacancy rate and high rental demand, so investors can be confident that their properties will find tenants. The rental yield in Adelaide has historically been stable and consistent, with little variation over time. The average gross rental yield for houses and units in Adelaide is currently at 4.2% and 5.3%, respectively, as of June 2021. These rental yields have remained stable in recent years, with little variation even during the COVID impact. Buying an investment property in Adelaide can be a solid investment decision, given the city’s current market conditions.
If you are considering investing in Adelaide real estate the team at JKC Real Estate is here to help. We can provide you with expert advice on the Adelaide property market and can help you find the perfect investment property to suit your needs.
JKC Real Estate is dedicated to the people and properties of Adelaide. From the foothills and Eastern suburbs to the Bay and everywhere in between, our premier Glenelg real estate agency provides superior residential property services to the Adelaide community. If you are considering selling or buying a home in Adelaide, we would be delighted to assist you. Contact our team at (08) 8350 9805.