Regional South Australia seldom features in discussions about property investment but, if new market data is anything to go by, this could all be about to change.

Buyers seeking affordable properties with investment potential should look further afield than their own backyards, with exclusive PropTrack data revealing which regions offer the best buy-in prices, solid rental returns and potential for price growth.

Lower North, which encompasses Clare, Gilbert Valley, Goyder and Wakefield, topped the list in terms of annual price growth, with houses across the region now selling, on average, for $380,000 — 65 per cent more than they did just a year ago.

The average rent, meanwhile, sits at $350 a week – 9 per cent higher than this time last year, meaning investors could reap gross rental yields of at least 4.8 per cent.

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28 Craig Hill Rd, Clare – in the Lower North – is on the market for $3.2m through Ray White Clare Valley.

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Home buyers in the Murray and Mallee region could also pocket hefty rental returns.

While the median house price has jumped by 18 per cent over the past year, up to $395,000, the average rent sits at $400 a week, promising investors a gross rental return of 5.28 per cent.

It’s a similar picture for the Eyre Peninsula and South West, Outback SA and the Mid North.

All three regions have house prices ranging between $250,000 and $395,000, average rents of $360 a week and gross rental yield of over 4 per cent.

The Murray and Mallee region, Kangaroo Island, the Limestone Coast and Eyre Peninsula and South West also received a mention for the sharp rise in unit prices, ranging between 11 per cent and 39 per cent.

PropTrack Senior Economist Paul Ryan said regional SA was not only ripe with potential but needed the attention of investors to meet housing demand.

63 Schmidt Lane, Bowhill — in the Murray and Mallee region – is on the market for $299,000 through Ray White Tea Tree Gully.

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With more city dwellers having relocated to country and regional areas since the pandemic, Mr Ryann said housing supply has dried up drastically, pushing up prices and putting a strain on communities.

“All of these numbers show that we need to build more homes … not just in the city but the regions,” he said.

“In the past, there’s been the argument that there hasn’t been any demand for it but I think the last couple of years have shown that’s absolutely not true.

“More people can work remotely, which means there are more opportunities to live in regional areas and that migration is already happening.”

66 Reusch Drive, Nuriootpa – in the Barossa – is on the market with a price guide of $579,000 to $609,000 through Homburg Real Estate – Tanunda.

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Ray White Sales Performance Specialist Sam Grover said both house and rental price growth was, in part, driven by capital works projects.

“In relation to the Claire and Burra markets, I know they had a lot of labour (forces) go to that area for the wind farms … which is driving prices upwards,” he said.

“For those rentals at the moment, we have to quote two prices because there’s one price for the wind farm aspect and another for the locals.

“In Mount Gambier, we get a lot of investors from Victoria who are showing interest because of the way the rental market is now legislated in their own state.

“So, broadly speaking, each regional market probably has a slightly different reason as to why they are in demand with buyers but regional properties are definitely sought after and worth investing in.”

1. Lower North

Median house price: $380,000

12 month price change: 65 per cent

2. Barossa

Median house price: $580,000

12 month price change: 21 per cent

3. Murray and Mallee

Median house price: $395,000

12 month price change: 18 per cent

4. Limestone Coast

Median house price: $421,000

12 month price change: 17 per cent

5. Mid North

Median house price: $250,000

12 month price change: 16 per cent.