South Australia has moved on from a state renowned for sheep, wheat and wine, to one that has become a lucrative environment for property investment.
From its spectacular ocean views, to its world-renowned wineries and lush green hills, South Australia is certainly a tourist delight for both interstate and international travellers.
While the South Australian economy was once reliant on manufacturing and mining, the state aims to transform its economy to one built on innovation and knowledge-based industries. Currently, the state is ramping up its liveability factor by redeveloping its existing infrastructure, amenities and services. South Australia also aspires to become a green state, with plans for Adelaide to become the world’s first carbon-neutral city by 2020.
Considering all these factors, South Australia is becoming a healthy market for property investment. With prices stagnating over the last year, homebuyers could potentially gain a lot more for a lot less.
Here are five South Australian suburbs that mum and dad might not have invested in 25 years ago, that could be a fantastic opportunity for both first-timers and seasoned property investors.
25 years ago, mum and dad would have known Seaton, in the western suburbs of Adelaide, as home of the General Motors-Holden assembly plant. That is, an industrial town which may have deterred those seeking a family-friendly environment.
Nowadays, Seaton has become an appealing community for families boasting stylish homes, an abundance of shops and amenities. It is in close proximity to the beaches and just 9 kilometres from Adelaide’s CBD.
Houses in Seaton fetch a median of $481,000, equating to a capital growth of 4.95% per annum. According to DSR Data, which measures demand to supply ratio (DSR) as a predictor of capital growth potential, it is a healthy market for investors.
Another hidden gem for families, with choice of both private and public schooling, is the north-eastern suburb of Golden Grove. A mere 20 kilometres from Adelaide’s CBD, the bustling suburb of Golden Grove is also home to a variety of cafes and eating hubs, shopping precincts, a tavern and sporting fields.
Twenty or so years ago, Golden Grove was considered a budding suburb. But before housing development started in the late eighties and early nineties, the area was mostly scrubland, sand mines and quarries.
Today, its median house price may be slightly over average, at $457,500 but, according to locals, it’s worth every penny for a slice of this “clean, green, safe, quiet family-friendly town.”
Touted as the South Australian suburb with the highest population growth in 2015, Seaford, 30 kilomteres south of the CBD, is abundant with natural beauty – from pristine beaches, to nature reserves.
With a median house price of $345,000, Seaford offers a slice of coastal living at an affordable price. An above-average demand for houses within the area, assures Seaford is also a sound investment.
This is in stark contrast to what your parents would have surveyed in the early nineties, when Seaford had only just begun expansion and was establishing itself as a residential area. Although tourism started here way back in the 1900’s significant development didn’t occur until the mid-50’s and again in the early 90’s with the population doubling between 1991 and 2011.
A mere 10 minutes north of Adelaide’s CBD, and part of The City of Port Adelaide Enfield council area, Enfield’s current median house price is a neat $400,000, making it a popular choice for young families and independent renters.
There had been significant redevelopment in the area post war but 25 years ago, when mum and dad were looking to buy, the population started to decline. It wasn’t until the urban renewal and redevelopment of land previously owned by the Department of Agriculture in 1996 that populations started to rise again, peaking in 2011.
The suburb now offers easy access to numerous museums, sports facilities, shopping and entertainment precincts and beaches.
A slightly more competitive market, given the sheer demand for property, Daw Park, an inner southern suburb in the City of Mitcham local government area is situated close to both the CBD and the coast.
As one local describes it, Daw Park is “close to everything”. It boasts access to good schools, medical centres, and food and shopping precincts. With many old and established homes, Daw Park is a popular location for buyers looking to renovate.
Once a rural area, which later made room for post-war housing and the now closed Mitsubishi motor plant, Daw Park’s reputation has only recently started to catch up to some of its more prestigious neighbouring suburbs, which may have deterred Mum and Dad from making a purchase here 25 years ago.
Today, with a median house price of $603,500, Daw Park it is touted as an area with “a lot of promise close to the city and coast.”
If you’re ready to buy but still don’t know where, check out our other articles on hot suburbs across Australia that weren’t so hot 25 years ago: