If you compare the increase in value of investment property in Port Adelaide, 5015 to the rest of Australia, it performed very well. The median increase in value, or capital gain property investors experienced for this SA suburb was 49.61%.
Data for the last quarter indicates that, in the short term at least, the capital value growth rate for property investors in Port Adelaide has increased when compared to the 5 year average annual rate.
At number 593 in a list of fastest selling suburbs, Port Adelaide is in the TOP 20% of suburbs in Australia with an average of days on market 57.4 for properties listed there.
Using the current median advertised rental of $407.5 and the average annual increase in value of a median property of 9.47%, investors should hope to achieve an overall return of 3.72%
Property investors should expect to get $355 weekly from the median priced house in this suburb.
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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.