Where house prices have grown 111 per cent in half a decade but still cost only $404,750

House prices in one of Australia’s top-performing suburbs have skyrocketed by a staggering 111 per cent over the past five years, but the median price is still $404,750, well below the national median of $1.113 million.

Located on the northern outskirts of Adelaide, the residential area of Elizabeth Downs stands out as a great investment opportunity. Its affordability, coupled with a significant increase in property value, has made it a hotspot for investors.

Despite the massive 111 per cent rise in its median house price, it remains relatively affordable at just $404,750 – well below Adelaide’s $902,332 median house price — making investors across the country hungry for a piece of the pie.

“[Elizabeth Downs] is in demand, especially amongst investors. They can see that the prices are still relatively affordable, but they’re getting real positive returns,” says local agent Alan Dohnalek of Ray White Craigmore.

SOLD - $412,000

10 Stakes Crescent, Elizabeth Downs SA 5113

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Investors in Elizabeth Downs are currently seeing a median rental yield of 5.47 per cent, significantly higher than the 4.19 per cent Adelaide median. The median weekly rent in Elizabeth Downs is $410.

“We’re starting to see the new migrants and families coming to work and live in Elizabeth Downs,” he says. “[The area] has predominantly historically been blue-collar workers because of the manufacturing presence in the Elizabeth area.”

Local agent Sam Doman of Ray White Tea Tree Gully has also seen a growth of investors interested in the area.

“In the past, it’s been better rental returns [for Elizabeth Downs properties], but not as great growth, whereas now you’ve got amazing rental return and you’ve got better growth, so it’s fantastic.”

“We’ve had numerous calls from interstate people wanting to register to bid on property they haven’t seen. They just do the sums of the return the investments,” he says.

SOLD - $580,000

15 Barton Road, Elizabeth Downs SA 5113

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An example is the three-bedroom house on 15 Barton Road, a property recently listed by Dohnalek, where he saw “a big, big level of interest” primarily from investors and developers.

Domain’s chief of research and economics, Dr Nicola Powell, says Elizabeth Down’s interstate investor-led demand could be coming from the growing wave of rentvestors nationwide. 

“It’s suburbs like Elizabeth Downs that offer a much lower price point for somebody to break into the housing market as that rentvestor – where they’re not necessarily living in it, and they’re continuing to rent,” she says.

“Investors tend to be driven by capital growth, and when you’re seeing numbers like that coming out of a suburb it can be the impetus to either sell off or want to jump on that bandwagon.”

SOLD - $545,000

5a Robins Street, Elizabeth Downs SA 5113

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Even though the northern Adelaide suburb is a bubbling investor hotspot, Domain data says about 60 per cent of the home owners are owner-occupiers.

Doman says despite the massive five-year growth, Elizabeth Downs is affordable compared to other areas of the city.

“You can either own a two-bedroom unit with strata fee [for the same price] close to the city, or you can own your own piece of dirt,” he says. “I think that’s what’s attracting a lot of people.”