Mitchell Park was picked out by APM as one to watch, thanks to its consistently strong capital growth performance.
Capital growth should also be fuelled in the medium to long-term by local initiatives, such as the redevelopment of the Marion Westfield and the new billion dollar Tonsley Park precinct. This second project in particular will be of interest to investors. Right next door to Mitchell Park, Tonsley Park’s state government sponsored mission is to create thousands of new jobs and attract 8,000 students to its $125m education centre.
While it’s a good 10km south-west of the CBD, Mitchell Park has good accessibility thanks to the Tonsley railway line and Marion Road, both of which can get residents into the city in around 20 minutes.
It’s an area that has gone through a substantial redevelopment programme in recent years, says Magain Real Estate sales consultant Andrew Boswell, with former South Australian Housing Trust maisonettes being sold off to private developers. Areas such as Bahloo Avenue, McFarlane Avenue and Merchant Avenue have been transformed as a result.
“There are also new developments going on that are attracting young professionals and what’s left of the first homebuyer market,” he says, pointing to David Avenue and Richard Avenue as a couple of areas to watch.
The area does well for local amenities, with the Park Holme Shopping Centre being within walking distance and Brighton and Glenelg Beaches being a short drive away. Local schools include Hamilton Secondary School, Sacred Heart Middle School and Clovelly Park Primary.
Flinders University, the Flinders Medical Centre and Flinders Private Hospital are also all within a couple of kilometres, while the recently completed state swimming centre is bringing in enquiries from parents who are looking to move close to their child’s training facility, says Boswell.
He notes that the suburb’s currently attracting a high proportion of investors and young families, pointing out that there are still a lot of properties on 650 to 700 m2 blocks that have room for children but also scope for development.
The rental market here is strong, he adds: “There’s good access to the city and the bay, so we don’t have much of a problem finding good tenants here.”
The proportion of renters in the suburb came in at 36% during the 2006 Census. This figure is expected by SQM Research to skyrocket to 49% by 2016, suggesting that – if the area’s vacancy rate stays low – rents will be pushed north in the coming years.