Looking for an affordable property? Our list of the top 10 affordable suburbs in South Australia right now, might help you.
The South Australian property market is forging ahead, with strong double-digit price growth over the year to August 2021, despite the COVID-19 virus and related impacts on the Australian economy. Prices have increased over the past year in Adelaide, but there are still areas where bargains can be found, and if you have a long-term strategy, you can still expect solid capital growth over the next few years.
With mortgage rates still close to the lowest on record, there are some opportunities for those with good savings and a level of employment security. In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas of the state is cheaper than paying rent.
First home buyers are still active in the market and are competing with investors for low levels of stock. More affordable areas have been sharply in focus as the number of first home buyers in the market has recently surged to decade highs, and this trend is expected to continue.
RiskWise Property Research has undertaken an in-depth analysis of the housing market, identifying the top 10 affordable suburbs in South Australia. The report clearly showed that detached houses represented solid buying opportunities for those with long-term strategies.
There are decent opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer. There are cheaper suburbs in more distant or less favoured locations, but buying in the lowest quartile of the housing market can sometimes come with its challenges and risks.
The top 10 suburbs in South Australia
The top 10 suburbs for the affordable houses in South Australia included a range of suburbs at around 70% of the median capital city house price for the state.
|Suburb||Postcode||SA4 Area||Distance from the CBD||Median Price||Median Capital City Price||1-Year Growth||5-Year Growth|
|Taperoo||5017||Adelaide – West||16km||$422,158||$542,913||10.8%||32.0%|
|Surrey Downs||5126||Adelaide – North||17km||$439,383||$542,913||14.1%||27.7%|
|Nairne||5252||Adelaide – Central and Hills||30km||$445,148||$542,913||9.3%||20.6%|
|Aldinga Beach||5173||Adelaide – South||41km||$453,035||$542,913||17.4%||31.8%|
|Redwood Park||5097||Adelaide – North||16km||$454,002||$542,913||14.5%||28.1%|
|Ridgehaven||5097||Adelaide – North||15km||$457,644||$542,913||13.9%||28.0%|
|Holden Hill||5088||Adelaide – North||11km||$460,719||$542,913||13.9%||33.1%|
|Fairview Park||5126||Adelaide – North||18km||$471,841||$542,913||17.1%||26.7%|
|Sellicks Beach||5174||Adelaide – South||47km||$475,228||$542,913||33.0%||50.6%|
|Athelstone||5076||Adelaide – Central and Hills||11km||$610,104||$542,913||9.5%||21.9%|
In South Australia, Adelaide North had the highest number of affordable houses. The median prices for suburbs in this region were between $400,000 and $500,000 compared to nearly $550,000 for Greater Adelaide.
The Adelaide Hills region has been a drawcard to homebuyers seeking a lifestyle. As more people can work remotely, the area is gaining even more of a reputation as having good buying potential. Price growth in the region has been solid rather than spectacular over the past five years, at around 20 per cent capital growth.
While there are still excellent opportunities for houses in Adelaide and its immediate surroundings, units continued to carry a materially higher level of risk, on average.
Interested in finding out what the top ten suburbs in another state are?
Check out the top 10 affordable suburbs in New South Wales
Check out the top 10 affordable suburbs in Victoria
Check out the top 10 affordable suburbs in South-East Queensland
Check out the top 10 affordable suburbs in the Australian Capital Territory