Adelaide the most under-rated among the capital cities: Terry Ryder

Adelaide the most under-rated among the capital cities: Terry Ryder
Adelaide the most under-rated among the capital cities: Terry Ryder

Adelaide often flies under the radar for investors. It’s perhaps the most under-rated among the capital cities, despite having delivered good growth rates in the past and currently it leads the nation on some measures, including the rise in sales activity.

Across the Adelaide metro area, the standouts are middle-market precincts like the City of Charles Sturt. This LGA, immediately north and north-west of the Adelaide CBD, is at the forefront of Adelaide’s efforts to evolve its economy, as manufacturing industries fade.

Topping the list of Adelaide projects is the $2 billion Royal Adelaide Hospital, due for completion in late 2016. There is also a serious focus on improved transport infrastructure, including road and rail, which will better connect industrial precincts and outer suburbs with the CBD, the Port of Adelaide and Adelaide Airport.

The City of Charles Sturt attracts people because it’s close to the beaches, the CBD, the airport and regional shopping facilities. Henley Beach is one of Adelaide’s most popular, with a noted restaurant precinct with boutique shopping. 

The LGA has long been considered the sporting and entertainment hub of Adelaide, with national basketball, soccer and football stadiums, three privately-owned golf courses, an international rowing course, the River Torrens Linear Park, the Adelaide Entertainment Centre, the coast and numerous highly-regarded local sporting venues.

The City is well-catered-for in terms of schools and medical services. Health is the largest employer in South Australia and has replaced manufacturing as the largest employer in Charles Sturt, which has two major hospitals: the Queen Elizabeth Hospital (the Western Region’s primary health care provider) and Western Hospital at Henley Beach.

Charles Sturt is a solid middle-market area that offers affordable homes, low vacancies and a strong construction pipeline. 

The LGA has bayside suburbs west of the Adelaide CBD, including rising markets such as Henley Beach (median house price $790,000) and Henley Beach South ($763,000), as well as some more affordable locations such as Findon ($473,000), Kidman Park ($570,000), Semaphore Park ($467,000) and Seaton ($460,000).

Long-term growth rates (average annual growth in median prices over 10 years) are generally 5–6% per year. Henley Beach, Henley Beach South and Woodville Park are slightly higher at 7 percent per year (which means values doubling in 10 years).

Most of properties in the city are stand-alone houses (73 percent), while 28 percent are units, according to the 2011 Census. However, there has been a marked increase in the number of units being built in the last three years.

Vacancies across Charles Sturt are generally low, with many postcodes having vacancy rates below 2 percent. Only postcodes 5020 and 5021 (which includes West Lakes and West Lakes Shore) have vacancies outside the general comfort zone.

Much is happening in Adelaide generally and the City of Charles Sturt specifically, and this is partly attributed to the State Government’s 30-Year Plan for Greater Adelaide.

Using the plan as a guide, Renewal SA is initiating urban renewal developments, led by four major projects valued at over $2 billion. The largest project will see the population of the small inner suburb of Bowden grow from a few hundred residents to 3,500 over the next decade. This area is being revitalised with cafés, restaurants, shops, offices and parks.

The old AAMI Stadium (also known as Football Park) at West Lakes is to be redeveloped. In 2014, the South Australia National Football League sold AAMI Stadium to developers Commercial and General for $71 million. Commercial & General has plans to develop the site into residential, commercial and community land uses. It is estimated 1,600 homes will eventually occupy the site. 

Another Renewal SA project will see land adjacent to the Woodville Railway Station transformed with a mix of medium-density to high-rise dwellings.

Terry Ryder is the founder of You can email him or follow him on Twitter.

Terry Ryder

Terry Ryder

Terry Ryder is the founder of

Adelaide Property market

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