Almost all of the investment properties that changed hands in Adelaide over the past year sold for more than they were bought for, a new report reveals.
The PropTrack Terri Scheer Investor Report found that 99 per cent of investment properties sold across the metropolitan area were profitable.
Rapid price growth in recent years was considered to be the driving factor.
Investors are out in force, the report says, with loans up 16 per cent in SA from the 2024 to 2025 financial year.
Investors now make up 39 per cent of all homeowners in the state – close to their highest share of lending on record.
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Almost all of the investment properties that changed hands in Adelaide over the past year sold for more than they were bought for, a new report reveals.
Falling mortgage rates, high rental yields and fast leasing – typically less than three weeks – are among the key factors attributed to the increase in investors.
Evanston Gardens, Elizabeth North and Evanston were the top investment areas for houses, with the suburbs’ price growth about twice that of Adelaide’s and yields above the capital’s median of 3.9 per cent.
Brooklyn Park, Camden Park and Morphett Vale ranked highest for units.
Turner Real Estate managing director Lachlan Turner said low supply and rising buyer demand was creating the perfect conditions for more strong price growth.
“Stock levels continue to tighten, sitting 15 per cent lower than this time last year, with lower-quartile homes (between $600,000 and $700,000) leading price growth, up 3.3 per cent for the quarter compared to 1.7 per cent at the upper end ($1.2 million-plus),” he said.
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Turner Real Estate managing director Lachlan Turner.
“Meanwhile, the rental market remains highly competitive, with weekly asking rents averaging $610 for houses and $550 for units, delivering healthy 3.4 per cent and 4.5 per cent gross yields respectively.”
Nationally, investor activity picked up across most of the country over the past year, according to the report.
REA Group senior economist Angus Moore said investors now made up a substantial share of new lending.
“Rental market conditions remain very tight, and rents have grown rapidly in recent years. That’s likely encouraging investors to buy in,” he said.
“With markets expecting at least one further rate cut by the Reserve Bank and challenging rental market conditions persisting, strong investor activity is likely to continue over the rest of this year and next.”
Terri Scheer executive manager Carolyn Parrella said with more than 90 per cent of investment properties across the country selling for more than their purchase price, the current market conditions could present a lucrative opportunity for investors.
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REA Group senior economist Angus Moore.
Top 10 Investor Suburbs – Houses
(Rank, suburb, median sale price, annual median percentage growth, rental yield)
1. Evanston Gardens – $640,000, 23.4 per cent, 4.6 per cent
2. Elizabeth North – $505,000, 19 per cent, 4.8 per cent
3. Evanston – $614,000, 21.5 per cent, 4.6 per cent
4. St Clair – $720,000, 18 per cent, 4.5 per cent
5. Elizabeth Downs – $560,000, 21.7 per cent, 4.6 per cent
6. Evanston Park – $715,000, 21.2 per cent, 4.4 per cent
7. Greenwith – $880,000, 22.2 per cent, 4.3 per cent
8. Smithfield Plains – $568,000, 20.8 per cent, 4.6 per cent
9. Davoren Park – $553,000, 19.5 per cent, 4.6 per cent
10. Salisbury North – $610,000, 17.3 per cent, 4.8 per cent
Top 10 Investor Suburbs – Units
(Rank, suburb, median sale price, annual median percentage growth, rental yield)
1. Brooklyn Park – $455,000, 27.10 per cent, 5 per cent
2. Camden Park – $618,000, 39.8 per cent, 4.5 per cent
3. Morphett Vale – $578,000, 22.70 per cent, 4.5 per cent
4. Glenside – $689,000, 26.7 per cent, 4.7 per cent
5. Salisbury – $441,000, 22.2 per cent, 5.1 per cent
6. Campbelltown – $650,000, 27.1 per cent, 4.7 per cent
7. Klemzig – $497,000, 17.2 per cent, 5 per cent
8. Glenelg East – $690,000, 21.1 per cent, 4.2 per cent
9. New Port – $472,000, 16.9 per cent, 4.9 per cent
10. Plympton – $499,000, 19.2 per cent, 4.3 per cent
Source: The PropTrack Terri Scheer Investor Report
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