Top Suburbs for Rental Yield in South Australia
Potential returns are a vital aspect of any property investor’s investment plan. It’s why many property investors are setting their eyes on South Australia. The state has one of the country’s lowest average house prices and relatively high rental yields.
But where is the best place to purchase a rental property in South Australia? Before going through with your property purchase, consider the suburbs with the best rental yields.
Overview of the South Australian rental market
According to the latest data from SQM Research, vacancy rates in Adelaide were at 0.7% in July 2024 with only 1,103 residential vacancies. In the past year, the vacancy rate has held steady between 0.5% and 0.7% indicating a strong landlord’s market.
Meanwhile, according to RealEstate.com.au, PropTrack data shows that the vacancy rate in regional South Australia is now at 1.22% which is still relatively low considering that a healthy vacancy rate usually sits between 3% to 4%.
In South Australia, the rental market is tight meaning the number of tenants far outweighs the vacant rental properties. This could give potential real estate investors a great opportunity to capitalise on the overwhelming demand.
In addition to low vacancy rates, the state also has high rental yields with the top grossing suburbs grossing between 4% to 9%. For context, a rental yield of 3% to 6% for residential properties is considered a good net rental yield.
Suburbs in Greater Adelaide with high rental yields
The Greater Adelaide area, specifically the Adelaide – North region, has seen record market growth. According to the latest research from PropTrack, more affordable areas tend to outperform more expensive cities and suburbs.
In Adelaide, the growth in home prices is quite impressive. The annual growth for Adelaide – North is 19%, Adelaide – West is 17%, Adelaide – South is 15%, and Adelaide – Central and Hills is 11%. Property investors can take advantage of both the rental market and steadily growing property values in Greater Adelaide.
Highest rental yield suburbs in Greater Adelaide for houses
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Elizabeth North | Adelaide – North | 5.9% | $412 |
| Elizabeth Downs | Adelaide – North | 5.8% | $426 |
| Smithfield | Adelaide – North | 5.8% | $411 |
| Eyre | Adelaide – North | 5.7% | $511 |
| Elizabeth South | Adelaide – North | 5.7% | $414 |
| Davoren Park | Adelaide – North | 5.7% | $427 |
| Elizabeth Grove | Adelaide – North | 5.6% | $418 |
| Elizabeth Park | Adelaide – North | 5.6% | $451 |
| Smithfield Plains | Adelaide – North | 5.6% | $443 |
| Munno Para | Adelaide – North | 5.4% | $487 |
Source: CoreLogic Best of the Best 2023 (December 2023) report
In Greater Adelaide, the highest performing suburbs for units are also mostly found in North Adelaide. The rental yield for units in Greater Adelaide has a broader range than houses, from 5.4% to 6.7%. It’s interesting to note that even though Salisbury has the highest rental yield percentage with 6.7%, it has the second lowest median rental value on the list with $380.
Suburbs in Regional South Australia with the highest rental yield
Regional South Australia may not see as much rapid growth as Greater Adelaide, but median home values are still rising compared to the same time last year. Rental yields are going strong as many may see Regional South Australia as a good alternative to living in the more expensive metropolitan area.
Highest rental yield suburbs in Regional South Australia for houses
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Elizabeth North | Adelaide – North | 5.9% | $412 |
| Elizabeth Downs | Adelaide – North | 5.8% | $426 |
| Smithfield | Adelaide – North | 5.8% | $411 |
| Eyre | Adelaide – North | 5.7% | $511 |
| Salisbury | Adelaide – North | 6.7% | $380 |
| Adelaide | Adelaide – Central and Hills | 6.2% | $570 |
| Salisbury East | Adelaide – North | 5.9% | $357 |
| Andrews Farm | Adelaide – North | 5.9% | $412 |
| Mawson Lakes | Adelaide – North | 5.8% | $461 |
| Tonsley | Adelaide – South | 5.8% | $477 |
| Kilburn | Adelaide – North | 5.5% | $412 |
| Kurralta Park | Adelaide – West | 5.5% | $423 |
| Lightsview | Adelaide – North | 5.5% | $543 |
| New Port | Adelaide – West | 5.4% | $417 |
Source: CoreLogic Best of the Best 2023 (December 2023) report
The highest rental yield suburbs in Regional South Australia for houses are mostly concentrated into two main regions: Barossa – Yorke – Mid North and South Australia – Outback. The media rental values are within close range with the lowest and highest having only a $76 difference. However, it’s important to note that the range in rental yields varies greatly per suburb; the highest rental yield is at 9.3% and the lowest is at only 6.2%.
Highest rental yield suburbs in Regional South Australia for units
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Port Pirie West | Barossa – Yorke – Mid North | 9.3% | $361 |
| Solomontown | Barossa – Yorke – Mid North | 8.9% | $360 |
| Risdon Park | Barossa – Yorke – Mid North | 7.8% | $374 |
| Port Pirie South | Barossa – Yorke – Mid North | 7.7% | $376 |
| Whyalla Norrie | South Australia – Outback | 7.5% | $328 |
| Roxby Downs | South Australia – Outback | 7.5% | $379 |
| Whyalla | South Australia – Outback | 7.4% | $381 |
| Whyalla Stuart | South Australia – Outback | 7.3% | $319 |
| Whyalla Jenkins | South Australia – Outback | 6.4% | $395 |
| Berri | South Australia – South East | 6.2% | $373 |
Source: CoreLogic Best of the Best 2023 (December 2023) report
The highest rental yield suburbs in Regional South Australia for houses are mostly concentrated into two main regions: Barossa – Yorke – Mid North and South Australia – Outback. The media rental values are within close range with the lowest and highest having only a $76 difference. However, it’s important to note that the range in rental yields varies greatly per suburb; the highest rental yield is at 9.3% and the lowest is at only 6.2%.
Highest rental yield suburbs in Regional South Australia for units
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Mount Gambier | South Australia – South East | 4.9% | $292 |
| Victor Harbor | South Australia – South East | 4.8% | $365 |
Source: CoreLogic Best of the Best 2023 (December 2023) report
In Regional South Australia, only two suburbs made it to the high rental yield for units. Both suburbs are found in the South Australia – South East region and have comparable rental yield percentages of 4.8% for Victor Harbo and 4.9% for Mount Gambier. However, there is a significant disparity between the two’s median rental values which is a $73 difference. This shows that even though the rental yields are almost identical, there may be significant differences in the actual rental value of the property.
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