Property value increases in Port Adelaide have tracked lower than the SA average of 2.78% over the last 12 months.
Comparing Port Adelaide,5015 ‘s 5year and quarterly average capital gain offered to property investors, it performed less well across the longer period
Using the current median advertised rental of $415 and the average annual increase in value of a median property of 6.91%, investors should hope to achieve an overall return of 4.55%
With the median price for a house in Port Adelaide being $335000 and the advertised rent reaching $360 the gross rental yield for property investors calculates out to be 5.59%
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Port Adelaide may not have taken off the way investors had hoped when grand plans were announced for $1.5bn in redevelopments several years ago, but it could still be set for the type of growth that saw the regeneration of industrial suburbs in Melbourne and Sydney.
“It’s industrial, but so were places like the Docklands [Melbourne] and places in Sydney, like the wharfs that they’ve turned around,” says Angelo Mena, managing director of Adelaide Property Finders.
“People are screaming about Christies Beach because it’s $300,000 to $350,000 to get into a reasonable place there and you’re close to the beach, but you’re 30-35km from the city. Port Adelaide is much closer.”
At around 15km from the CBD along Port Road, Port Adelaide is certainly accessible by car, and is just 20 minutes from Adelaide station by train.
The rental market is tight, with vacancy rates having however around the 2% mark since August 2010, according to SQM Research, and the average yield for houses is relatively strong at more than 5%.
“The vision that people had five or 10 years ago when they were planning all of this may have stalled, but it will come to fruition,” says Mena.