Real Estate

Where to find Adelaide’s top rental yield hotspots…

Written by The ReReport
As seen in the Source link, written by on 2019-01-10 11:38:38

Adelaide’s northern suburbs have long been a hotspot for investors looking for rental yield.

But what if you are looking to combine rental yield with capital growth that might be expected from a property with easy access to the CBD?


Latest rental data from shows outer northern suburbs in the Playford Council area, some 25-plus kilometres from the CBD, are hands-down Adelaide’s winners for rental yield (a real estate industry measure of rental return as a percentage of a property’s value). Areas in the Salisbury Council area also fare well.

Elizabeth North, which has a median rental price of $245 per week, and houses still available for purchase at less than $200,000, tops the list. The suburb, some 30km north of the CBD has an average rental yield of 7.7 per cent.

Neighbouring Elizabeth Downs, Davoren Park, Elizabeth Park, Smithfield, Elizabeth East, Brahma Lodge, Munno Para and Salisbury North are also top of the northern rental yield list. All have yields of more than 6 per cent.


Closer to town, Adelaide’s top suburbs for rental yield are a diverse bunch.

Kent Town tops the inner suburban rental yield list at 6.2 per cent, coming from a median property price of $475 and a median weekly rental price of $565.

The suburb, on Adelaide’s eastern city fringe, is also listed as the fourth-highest for rental yield within 10km of a major CBD Australia-wide.

Other suburbs closer to town, to make the top rental yield list, all have house price medians in the high $300,000s to mid $400,000s and yields at or above 4.4 per cent.

They are from far afield as Athol Park, Woodville North, Mansfield Park, Ascot Park, Mitchell Park, Oaklands Park, Renown Park, Gilles Plains and Angle Park.


Toop&Toop leasing partner James Kilroe describes Kent Town as a relatively small suburb, about 30 per cent of which is taken up by Prince Alfred College.

But he says it is attractive to renters because of its unique position by the eastern parklands, within walking distance of all the action of the CBD to one side, or the cafes, cinemas and shops of The Parade to the other.

“It’s not in the city itself and still has that suburban feel,” Mr Kilroe says.

He says Kent Town has experienced “quite a few new developments” in recent months, with new builds often driving up rental demand and prices.

Typical renters in the area tend to be young professionals and downsizers who might have sold a larger home in Adelaide’s east and want to rent before buying a smaller city fringe property.

“We’ve seen a trend in the last 18 months to two years — the first stop for downsizers is to rent,” he says.

Mr Kilroe says properties in Kent Town tend to be tightly held by their owners and also tend to attract long-term tenants.

As a result, when properties come onto the market in Kent Town, they investors tend to circle them.


Business Development Manager Andrew Geppa of Ouwens Casserly Property Management notes many other suburbs on the top inner suburban rental yield list are undergoing urban rejuvenation.

Mr Geppa says Mitchel Park, Oaklands Park and Renown Park are all popular with renters due to their proximity to Flinders University, Westfield Marion, transport and the beach, as well as Tonsley Park, which was undergoing rapid change.

At the other end of town, Mr Geppa says Gilles Plains, in the northeast, has just had a major upgrade of its main shopping centre, while many older houses in the are were also starting to be knocked down and rebuilt.

“There’s lovely little parks across there and you’ve got Oakden (nearby) as well,” he says.

“It’s only 20 to 25 minutes out of the city – its an ideal location and its an affordable suburb.”

Mr Geppa notes Renown Park in the west is close to the Brompton/Bowden redevelopment, while Woodville is also riding on the success of the St Clair redevelopment.