SA’s most undervalued and overvalued suburbs revealed

Looking to buy in SA?

A new report shows which suburbs you should target in order to set yourself up for future growth, and where to avoid buying to reduce the risk of overpaying.

The SuburbData report highlights 20 suburbs it believed – based on a number of factors including demand to supply ratio, the price of neighbouring suburbs, the ripple effect potential, market cycle timing and the cost of houses versus units – were the most undervalued, and 20 it felt had become the most overvalued.

The most undervalued, the report highlighted was Thebarton, with a median house value of $837,000 – about $132,000 below its neighbouring suburbs.

Agent Thanasi Mantopoulos. Picture: Dean Martin

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LJ Hooker Mile End/Woodville agent Thanasi Mantopoulos said he felt Thebarton still had plenty of room for growth.

“In the 2024 financial year it grew by about 20 per cent and last year it grew by about 12 which was still a lot more than other suburbs, and there’s still plenty of room for it to grow yet,” he said.

“We’ve seen houses in neighbouring Mile End and Torrensville now consistently break the $2m mark for four bedroom, two bathroom and two living area properties, and the current record in Thebarton is $1.64m for a three bedder, so I think the next four-bedroom, two bathroom and two living area Thebarton home that sells should crack the $2m.”

Thebarton residents Bobby Cheung, 29, and his wife Lia, 30, said he was glad to hear Thebarton was forecast for further growth.

“I think any homeowner would think that’s good news, but for those trying to get into the market it’s not great,” he said.

“We love Thebarton. It offers a great lifestyle, it’s close to the city and it offers really easy access both north and south.

“We’d love to see more value growth here.”

Bobby Cheung, his wife Lia and daughter Eloise love living in Thebarton. Picture: Dean Martin

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Oakbank, Broadview, Clovelly Park, Camden Park, Cumberland Park, Brompton, Tonsley, Hove and Lightsview rounded out the top 10 most undervalued.

Port Adelaide Enfield council had the most inclusions in the top 20 with four, ahead of Adelaide Hills and West Torrens’ three each.

Vista, in the Tea Tree Gully council area, on the other hand, was identified as SA’s most overvalued suburb, ahead of Woodville, Taperoo, Leabrook, Wayville, Chapel Hill, Croydon, Trinity Gardens, Gulfview Heights and Keswick.

SuburbData director Jeremy Sheppard said those who purchased in “undervalued” suburbs could look forward to rapid capital growth as better value for money attracted more buyers and increased competition for property.

Overvalued suburbs offered a higher risk of new homeowners having to wait years to get growth on their investments, Mr Sheppard said.

Jeremy Sheppard of SuburbData. Supplied

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“It may take a while till you get any growth on your investment in an overvalued suburb,” he said.

“Usually prices will then level out over a few years but buying at the peak of a fast moving market could even mean, in extreme cases, that prices soon fall.”

Mr Sheppard said knowing which markets were undervalued or overvalued was important in the current climate given how significant prices had become.

“Adelaide is close to reaching the point where, as a whole, it is overvalued,” Mr Sheppard said.

“It’s not something to be overly concerned about as an owner, but it does point to a market that is slowing down and where the potential to get additional growth is diminishing.”

See the full top 20 most overvalued and undervalued list at adelaidenow.com.au

– with Aidan Devine

SA’s most undervalued suburbs

SA’s most overvalued suburbs

Source: SuburbData