South Australia’s Flagstaff Hill has been named the country’s top suburb for house investors, with a strong median listing price, encouraging rent and buy affordability metrics and solid yields making it a top choice.
The new research, from top buyers’ agents Henderson Advocacy, has revealed the top 10 suburbs for house investors, selected from the top 50 high growth local government areas across Australia.
Henderson Advocacy Founder Jack Henderson said two suburbs from South Australia made the list, with Hallett Cove also offering attractive opportunities for house investors.
Three suburbs from NSW made the list, as did three from Queensland and two from Western Australia.
“The suburbs that have made the list offer a perfect balance of affordability, low vacancy rates, and strong rental yields,” Mr Henderson said.
“They also demonstrate positive price growth, indicating a robust housing market.”
The report, Top Pick Suburbs: Unveiling the investor’s goldmine in Australia’s fastest-growing localities, said Flagstaff Hill, in the Onkaparinga LGA, was a “compelling investment prospect”.
The suburb has a median listing price of $759,000, with the average number of properties for sale rising from 13 three months ago to 16 now.
Days on market is just 26, indicating a relatively quick turnover, while the median weekly rent has risen from $520 a year ago to $580 now.
“The proportion of household income spent on rent is at a healthy 28 per cent, while the buy affordability indicator shows that buyers can purchase a property with less than 7.3 years of income,” the report noted.
“In addition, Flagstaff Hill offers a solid yield of 3.8 per cent.”
In second place was the Queensland suburb of Daisy Hill, which has a median list price of $750,000, with the average number of listings dropping slightly from 16 three months ago, to 13 now.
The median rental rate has risen from $550 to $600 and the vacancy rate is a “balanced” 1.5 per cent.
“Furthermore, Daisy Hill offers a good yield of 4.1%, making it a potentially lucrative investment,” the report notes.
In third position is the second South Australian suburb of Hallett Cove, which is in the Marion LGA.
“The suburb currently displays a median list price of $735,105, evidencing a healthy real estate market,” the report noted.
“While the average number of listings has slightly decreased from 27 three months ago to 26 now, the median days on market for sales is a swift 22, implying a quick turnover for properties in the area.”
The median lease price in Hallett Cove has climbed from $520 per week, up from $480 a year ago.
The vacancy rate is at a low 0.2 per cent.
“Importantly, Hallett Cove scores well in terms of rental and purchase affordability,” the report said.
“Only 28 per cent of the average household income is spent on rent, and the buy affordability is set at 7.4 years of income.
“These figures reflect a balanced and accessible market. Moreover, the suburb offers a decent yield of 3.8 per cent, adding to its attractiveness for potential investors.”
Mr Henderson said the diverse list of suburbs demonstrated the breadth of investment opportunities across Australia.
“Each suburb presents unique advantages, whether it’s the coastal charm of Hallett Cove or the urban appeal of Tighes Hill in Newcastle,” he said.
“Despite the challenges of the past year, the Australian property market has shown remarkable resilience.
“For savvy investors, there are still plenty of opportunities to be found.”
Other suburbs on the list include Woodvale (WA), Tighes Hill (NSW), Darch (WA), Middle Ridge (QLD), Kanimbla (QLD), Kotara, NSW) and Canning Vale (WA).
