5 best suburbs in Regional South Australia to invest in 2023
16 Jan 2023
Find out which suburbs Regional South Australia made the top five list in Canstar’s second annual Rising Stars Australian Property Market Report powered by Hotspotting.
The regional areas of South Australia seldom feature in a discussion about property investment, but they have a number of centres that offer affordable prices, high yields and solid growth prospects.
South Australia is sparsely populated beyond Adelaide but there are notable lifestyle towns, resources-related centres and regional centres which provide good options for investment, particularly for those seeking cheaper prices and higher yields.
The towns of the Victor Harbor area, the Copper Coast and the Barossa Valley provide lifestyle options, while Whyalla, Port Augusta and Port Pirie (the “Iron Triangle” towns) have economies more aligned with the resources sector.
Regional centres with more diversity in their economies include Murray Bridge, Mount Gambier and Port Lincoln.
The 5 best suburbs in Regional South Australia to invest in
- Hayborough
- Mount Gambier
- Murray Bridge
- Port Augusta
- Whyalla Stuart
In terms of locations with decent credentials for future growth, South Australia offers the most affordable options anywhere in Australia. Three of the locations in our Top 5 have median house prices below $300,000 and all have identifiable drivers of future growth. Another common feature is above-average rental yields.
Hayborough
Seaside towns in the Victor Harbor LGA south of Adelaide have seen a huge uplift in demand through the ‘Exodus to Affordable Lifestyle’ trend. Hayborough has joined others like Port Elliot and Victor Harbor with surging sales levels and prices, with buyers seeking a relaxed beach lifestyle within striking distance of the state capital. Recent growth has pushed the median house price up to $500,000.
Mount Gambier
A strategic location halfway between Melbourne and Adelaide is a key advantage for Mount Gambier – South Australia’s biggest regional city (population close to 30,000). Its economy has diversity, including tourism. It’s known for its volcanic landscape and crater lakes, as the capital of the Limestone Coast.
Murray Bridge
The Adelaide Hills precinct has thrived during the South Australian capital’s ‘up’ cycle. But those who find suburbs like Stirling and Aldgate too pricey can keep driving and consider the affordable alternative of Murray Bridge beyond the Greater Adelaide area. This riverside town has a vibrant economy, notable local businesses, houses in the $200,000s and vacancies near zero.
Port Augusta
Sales activity in Port Augusta has increased massively – from fewer than 20 sales per quarter two years ago to 90-100 more recently. Port Augusta house prices remain cheap, despite high growth recently, and the median rental yield is 6.6%. Port Augusta’s economy is transitioning from the former one based on coal-fired power stations to one where several large alternative energy projects are underway.
Whyalla Stuart
Buying activity in the key regional city of Whyalla is the highest ever, with sales volumes higher than the 2012/2013 resources-fuelled boom period. The key factor for Whyalla Stuart is houses below $200,000, yields around 8% and vacancies close to zero.
The 5 best suburbs in Regional South Australia to invest in
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| Suburb | Median price | 1-yr growth | 10-yr average annual growth (%pa) | Vacancy rate | Median rental yield | Upfront costs* | 20% deposit amount | Monthly repayments (P&I) with 80% LVR |
|---|---|---|---|---|---|---|---|---|
| Hayborough | $500,000 | 22.3% | 4.6% | 1.8% | 5.0% | $25,936 | $100,000 | $2,209 |
| Mount Gambier | $320,000 | 14.7% | 3.3% | 0.1% | 5.4% | $15,289 | $64,000 | $1,414 |
| Murray Bridge | $290,000 | 18.6% | 4.1% | 0.1% | 5.4% | $13,539 | $58,000 | $1,281 |
| Port Augusta | $245,000 | 19.3% | 1.2% | 1.2% | 6.6% | $11,061 | $49,000 | $1,082 |
| Whyalla Stuart | $170,000 | 12.2% | 3.4% | 0.2% | 8.1% | $7,216 | $34,000 | $751 |
Sources: Median price, growth and rental yield – CoreLogic data sourced from yourinvestmentpropertymag.com.au dated 1 August 2022. Vacancy rates – SQM Research as at September 2022. Upfront cost – canstar.com.au as at 7 October 2022. Home loan repayment data – canstar.com.au as at 7 November 2022. *Upfront costs include stamp duty, mortgage registration and transfer fees. Stamp duty based on non-first home buyer, owner occupier purchase of an established dwelling. Upfront costs do not consider other costs including conveyancing or lenders mortgage insurance. ^Monthly repayments based on a loan amount per the median property price less the applicable deposit amount, the average variable interest rate, and monthly principal & interest repayments made over a total loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $500,000 as at 7 November 2022, for 80% LVR (5.25%).
Cover image source: GagliardiPhotography/Shutterstock.com
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This article was reviewed by our Editorial Campaigns Manager Maria Bekiaris before it was updated, as part of our fact-checking process.
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