Suburbs offering the best rent return have remained relatively unchanged in Adelaide for the past few years, but two new investor hotspots are emerging.
Eyre in the city’s north and Tonsley in the south are among those with the highest rental yields for houses at 5.2 per cent and 5.08 per cent respectively, according to latest PropTrack data.
Traditionally northern suburbs, including Elizabeth, Smithfield and Davoren Park, have offered the highest rental returns for investors.
Property experts say the change comes after the two suburbs, which have median house prices of $550,000 and $665,000 respectively, have undergone significant redevelopment over the past few years.
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Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin
Tonsley is one of Adelaide’s suburbs with the highest rent return.
Turner Real Estate chief executive Emma Slape said proximity to public transport, education and medical centres, and defence and industry hubs for employment made homes in the suburbs more appealing.
“They’re both in the final stages of their development,” she said.
“People are attracted to new homes too, whether they’re buying or renting.
“The normal factors that drive that growth are apparent in both of those pockets.
“Anybody out there as a homebuyer or tenant, they’re looking for public transport, access to infrastructure, health (hubs) and schools.”
Harris Real Estate managing director Phil Harris said Tonsley was a promising spot for investors to buy because proximity to Westfield Marion, Flinders University and Flinders Medical Centre made it particularly appealing to renters.
“There’s a new supply of modern townhouses and apartment accommodation … and there has been the complete development of that entire area, with South Rd as well,” he said.
“It’s a good one for investors,”
Harris Real Estate managing director Phil Harris.
Tonsley Innovation District is part of the suburb’s rejuvenation. Picture: Renewal SA
Meanwhile, Woodville Gardens recorded the highest rental yield for houses at 5.63 per cent but Ms Slape and Mr Harris couldn’t pinpoint why.
Mr Harris said it was likely linked to new development in the area.
Woodville Place is a new masterplanned community being developed in the suburbs, with 37 affordable house and land packages and 30 public housing homes to come out of it.
Fox Real Estate agent Spiro Papaemanouil has sold several blocks of land in Woodville Gardens recently.
He said demand for property in the area was overwhelming but it was mostly from first home buyers.
Other suburbs among those with the city’s highest rental yields include Davoren Park (5.07 per cent), Smithfield Plains and Munno Para (both 5.02 per cent) and Elizabeth Grove (4.97 per cent).
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