Rental houses in Adelaide’s south are returning higher percentage yields than CBD properties, new figures show.
The CoreLogic RP Data statistics show house rental yields of 6.3 per cent for Hackham West, while Adelaide CBD houses are returning 3.3 per cent.
Christie Downs had the next highest rental yield in the south with 5.9 per cent, Hackham had 5.8 per cent and Huntfield Heights and Port Noarlunga returned 5.7 per cent.
This compared with returns of 2.5 per cent in North Adelaide.
Property managers attribute the rise mainly to Onkaparinga Council changing its zoning laws about six years ago to allow more medium-density housing.
“A lot of 'mum and dad' investors are buying bricks and mortar [because] it is a long-term thing with a guaranteed return,” Judy Harrow from Judy Harrow Property Management at Christies Beach told News Ltd.
“The money that we can get for a rental home is amazing – rentals don’t go backwards in our area, and the yields are certainly a lot higher.”
Ms Harrow said there was a shortage of four-bedroom, two-bathroom homes for larger families.
“There are a lot of families looking for larger homes in the Seaford Meadows area. “As far as families are concerned, the south has more to offer than the city in the way of local sports and beaches.”
SA Property Management director Debbie McFarlane said the beaches, transport and proximity to the city appealed to renters and investors.
“There is value for money in properties in the south and accessibility to the city,” Ms McFarlane told News Ltd. “A lot of investors bought house and land packages at Seaford and by buying new you are getting such good depreciation.
“Mums and dads who have paid off their house can buy a nice three-bedroom home and add it towards their superannuation.”