Australian Property News

Substantial opportunity for investors in SA below $250,000

Posted on Wednesday, November 16 2011 at 9:45 AM

South Australian residential property sales may be moving a little slower than recent years, however some areas are recording higher rental yields of almost five per cent, according to the Real Estate Institute of South Australia (REISA).

"The lower purchase price suburbs and regional areas are continuing to hit the top of the charts for yields, but it also must be remembered that long-term growth is a major consideration for property," said REISA president Greg Moulton.

"The latest yield data is showing that there is substantial opportunity for investors in the Adelaide metropolitan area, as well as key regional centres, and many of these areas have a purchase price of less than $250,000."

REISA's most recent quarterly Market Update reports that the average Adelaide metropolitan house rents haven't shifted significantly; up to $310 from $300 in the same period 12 months ago.

Likewise in regional SA the average house rents only moved $10 in the past 12 months, up to $240 per week, said Moulton.

"We have started to see the rental market cool a little as the economy slows, and our vacancy rate moving to just over three per cent is also an indication that South Australians are moving slowly and carefully considering each move they make," he said.

"The suburbs which recorded substantial movement in rental prices are typically in the inner areas and they are based on lower volume, so the figures also need to be used with some caution."