Last updated on September 5th, 2023
best areas to invest in south australia
Key Takeaways
- South Australia’s thriving economy, strong tourist market, affordable property prices and cost of living have helped various hosts to earn a nice income stream.
- Find out what real estate investors can expect when investing in Airbnb properties in Adelaide and nearby areas.
- Discover the top rental markets for property investments around South Australia along with their respective Airbnb data.
Introduction
Nestled in the southern central part lies the state of South Australia, a natural paradise with charming cities and small towns. It’s quite easy to fall in love with this state since it offers renowned wineries, natural wonders, and a great cultural scene.
The capital of SA, Adelaide stands out as one of the most elegant cities in Australia with its picturesque streets filled with trees and sophisticated architecture. With a thriving economy, a strong housing market, and an enviable lifestyle, Adelaide surely is able to draw the attention of real estate investors.
Adelaide is a city that offers plenty of investment opportunities. In fact, in our previous blog where we talked about the most profitable Airbnb cities in Australia, Adelaide took 4th place with an average annual revenue of A$57,451! Moreover, Adelaide is also a top city for STR investments as can be seen in Airbnb stats by city report.
In this article, we talk about the best areas to invest in rental properties in South Australia, including the top suburbs in Adelaide. You will also find out what expectations to have for real estate investments here. Continue reading to learn more.
Why should you consider buying investment property in Adelaide?
Adelaide is an interesting market to invest in from the perspective of property investors if we consider the many advantages it offers. Check out some of the major reasons why investment properties in Adelaide are an excellent idea:
Driving force behind SA’s economy
Overall, Adelaide’s economy has a consistent high performance and continues to flourish as time passes. The city is home to most major corporations in the South Australia area since it’s the center of government and commerce. As a matter of fact, Adelaide is the engine power of SA’s economy, contributing around 20% of the economic output.
Affordable living cost
When it comes to the affordability of living expenses and housing prices, Adelaide is indeed an attractive market for real estate investors. The city is one of the cheapest major cities in Australia to live in along with Perth with fairly low costs in categories like rent, transportation, food and entertainment.
According to realestate.com.au, the average property price in Adelaide ranges from A$781,000 for houses to A$465,000 for units.
Most liveable city
One of the main reasons for the population growth in Adelaide aside from its affordable living cost is the great quality of life that residents can enjoy here. The city has a laidback lifestyle and you can have access to top-quality amenities, healthcare services, public transportation system, and education.
The safe and clean environment, as well as the infrastructure and impeccable recreational facilities, helped Adelaide to rank high as one of the most liveable cities in Australia and also in the world.
Enjoy unique adventures
Are you an outdoor enthusiast or enjoy admiring nature while taking a stroll? Then let us tell you that you will love Adelaide since the city is surrounded by one of the most astonishing natural landscapes and is close to white-sand beaches and the best wine regions.
But not only the natural surroundings stand out in Adelaide because you can’t miss the opportunity to have the best cultural experiences! There are plenty of museums, theaters, and art galleries throughout the city. Furthermore, Adelaide is widely known for its world-renowned festivals and events such as the WOMADelaide, Adelaide Hills Crush Festival, Barossa Vintage Festival and many others.
Is Airbnb Profitable in Adelaide?
Worried that your investment may not end up being fruitful? Don’t worry because Airbtics confirms that Airbnb Investment Properties in Adelaide are profitable. Yet, investors should keep in mind that the level of profitability is also defined by factors like property type and location.
Butif you’re still hesitating about purchasing an investment property, you can always start your journey doing rental arbitrage in Adelaide, which is a legal way of earning passive income with a minimal budget! Either way, it’s best to be prepared beforehand and learn about the existing Airbnb rules to run your listing smoothly
According to Airbtics’ data, an Airbnb host can expect annual revenue of A$70,444 with a steady occupancy rate of 95% for operating a 2-bedroom property in Adelaide. With over 1,833 Airbnb listings and a low seasonality of 32%, Adelaide certainly is a catch to property investors.
Best rental markets for rental properties around Adelaide, South Australia
Adelaide has plenty of unique suburbs so you may wonder: where to invest in Adelaide? Let us lend you a hand! Check out the best neighborhoods in Adelaide and nearby cities in South Australia that are highly recommended for starting an Airbnb business:
1. Glenelg, Adelaide
- Total Number of Airbnb Listings: 102
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$469,000
- Airbnb Annual revenue: A$81,145
- Gross rental yield: 17.30%
2. Downtown Adelaide
- Total Number of Airbnb Listings: 406
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$420,000
- Airbnb Annual revenue: A$72,269
- Gross rental yield: 17.21%
3. North Adelaide
- Total Number of Airbnb Listings: 89
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$390,000
- Airbnb Annual revenue: A$64,932
- Gross rental yield: 16.65%
4. Henley Beach, Adelaide
- Total Number of Airbnb Listings: 63
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$430,000
- Airbnb Annual revenue: A$67,475
- Gross rental yield: 15.69%
5. McLaren Vale, Adelaide
- Total Number of Airbnb Listings: 80
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$510,000
- Airbnb Annual revenue: A$79,992
- Gross rental yield: 15.68%
6. Aldinga Beach, Adelaide
- Total Number of Airbnb Listings: 109
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): A$519,000
- Airbnb Annual revenue: A$74,709
- Gross rental yield: 14.39%
7. Tanunda, SA
- Distance from Adelaide: 76 kilometers
- Total Number of Airbnb Listings: 148
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): A$491,000
- Airbnb Annual revenue: A$99,812
- Gross rental yield: 20.33%
8. Port Elliot, SA
- Distance from Adelaide: 81 kilometers
- Total Number of Airbnb Listings: 156
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): A$630,000
- Airbnb Annual revenue: A$93,240
- Gross rental yield: 14.08%
9. Victor Harbor, SA
- Distance from Adelaide: 83 kilometers
- Total Number of Airbnb Listings: 157
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): A$500,000
- Airbnb Annual revenue: A$65,242
- Gross rental yield: 13.04%
10. Kingscote, SA
- Distance from Adelaide: 187 kilometers
- Total Number of Airbnb Listings: 118
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): A$318,530
- Airbnb Annual revenue: A$73,742
- Gross rental yield: 23.15%
Conclusion
Overall, nearby cities and neighborhoods in Adelaide offer a variety of attractive investment opportunities to property investors. While South Australia has plenty of cities that guarantee a nice passive income, it is still recommended to analyze all the options with care. So, we recommend making use of Airbtics’ Airbnb income calculator.
Getting to know the best places to Airbnb in South Australia is an excellent way to start your investment journey. Make data-based decisions with Airbtics and maximize profitability now!
