Adelaide homebuyers have been given a hitlist of the city’s most undervalued and underrated suburbs ripe for future price growth, even for those buying a multimillion-dollar residence.

July figures by property investment firm Suburb Data have revealed the top locations where homebuyers are getting the best of the market, with Gilberton promising the biggest bang for the buck.

Homes in the inner-northern suburb transact, on average, for $973,000 – meaning buyers are likely to pay $472,000 less than they would if they bought a home in neighbouring suburbs St Peter and Walkerville.

Buyers in Glen Osmond, meanwhile, where homes transact for $1.1m, saved around $396,000, compared to properties sold in sister suburbs, while Forestville – where the average home sells for $935,000 – offers savings of $169,000.

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Homes in Darlington and Panorama also transacted for at least $153,000 below neighbouring suburbs, while Walkerville, Wattle Park, Ethelton, Prospect and Athelton all offered savings of over $82,000.

The data also revealed which localities to avoid, with Stirling, South Brighton, Aldgate, Gawler East and Moana ranking as the state’s most overvalued property markets.

Homes, on average, transacted up to $88,000 above neighbouring properties in the regional SA towns.

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Suburb Data analyst Jeremy Sheppard said it was a surprise to see so many Adelaide suburbs that remained undervalued despite the city’s incredible property price growth over recent years.

“It’s peculiar for a market that’s had such a run up as Adelaide has had to still have high scores of areas that are undervalued, but I think that just points to the longevity of the cycle it’s in.

“Adelaide probably hasn’t quite finished its run up because even though it is getting more expensive it is still quite cheap compared to the other big five capitals.

“Many of the most undervalued markets are more expensive than the Adelaide standard but there could still be more growth.”

Suburb Data analyst Jeremy Sheppard.

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He adds that “undervalued” suburbs would see imminent price rises because the houses were better value than surrounding areas and were “due catch up growth”.

Meanwhile, home seekers who were considering purchasing in an “overvalued” suburb needed to be cautious, Mr Sheppard said.

“If you buy in an overvalued market there is a very high chance the prices are peaking and you can expect little to no growth in home values after purchase,” he said.

“In extreme cases, you could fall into negative equity as the prices adjust because overvalued markets can retract over time. This would be devastating if you had to sell.

“There is a big danger of buying in markets that are peaking. You would have to hold onto the property a lot longer and you’d be in more trouble if you had to offload because of some unforeseen event.”

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Ray White Prospect Director Stefan Siciliano said too many buyers were “fixated” on particular suburbs that were quickly going up in market value.

According to PropTrack data, house prices across greater Adelaide have risen by 13.8 per cent over the past year and 46.7 per cent since 2021.

“Unfortunately, the reality is that too many buyers are priced out of areas that they want. They get fixated on suburbs that are simply out of their reach and by the time they are ready to look at neighbouring suburbs, usually a few months later, those areas have become too expensive, too,” Mr Siciliano said.

“The reality is that buying a home is getting so much harder and currently not spoiled for choice.

“So the sooner people can get into the market, the better and definitely consider expanding your search.”

Sabrina Furlan and her partner Stefan D’Angelo, at their Alberton home. Alberton has been named one of Adelaide’s most undervalued suburbs in terms of property purchases. Picture: Dean Martin

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Homebuyer Sabrina Furlan, who purchased her house in Alberton at auction late last year, said looking further afield had helped her save big bucks.

Alberton has a median house price of $740,000, while homes in neighbouring suburb West Lakes transact for over $1.1m.

The picture looks equally bleak 15 minutes down the road in Prospect, where the average house sells for $1.153m.

“We were originally looking at surrounding suburbs, including Woodville and Cheltenham, as we wanted an older home to renovate,” Ms Furlan said.

“But when we looked at other areas nearby, because there was nothing on the market, we noticed prices went up quite dramatically.

“Then this house popped up. We didn’t think much of the suburb initially. In fact, we thought it was a bit feral – but we were wrong and we now love living here.

“I think people need to stop getting stuck on just one suburb they want to live in. It pays to shop around, especially with home prices going up, it certainly did for us.”

ADELAIDE’S TOP 20 UNDERVALUED SUBURBS