Redefining Perception: Inala Makes It to Top 5 Affordable Property Locations With Prospects

Inala, once a crime hotspot, defies expectations by becoming one of Australia’s top five property destinations due to its impressive transformation and appealing affordability, according to the latest research.

Despite its postcode’s history of over 3,600 criminal offences in the past year, Inala has emerged as an attractive option for property buyers and investors looking for affordable homes in Australia. Inala may have recorded an average of 10 offences daily, but it has transformed into one of the hottest property destinations.

Alongside Inala, the Hotspotting report also highlights Canning and Armadale in Perth, as well as Playford and Salisbury in Adelaide, as areas with immense strategic property buying and investing potential.

The surge in property values, largely influenced by the Covid-19 pandemic, has sparked interest among homeowners and investors alike. What was once overlooked due to crime rates is now attracting attention as affordable housing becomes increasingly sought after.

Terry Ryder, Director of Hotspotting, explains that buyers today are actively seeking affordable locations with high rental yields and the potential for capital growth. Contrary to the common belief that one must choose between these factors, Ryder contends that both can be achieved by making intelligent location choices. By targeting areas where property prices remain reasonable and rental yields are above average, investors can offset higher interest rates.

Inala, despite facing criticism from residents due to crime concerns, has witnessed impressive capital gains. The suburb has caught the attention of buyers as its median house price surged by a noteworthy 10.5 per cent to reach $552,500 in the past year, showcasing its increasing desirability.

According to Ryder, Inala properties offer not only affordability but also appealing three-bedroom cottages on spacious plots, presenting opportunities for a renovation that particularly attracts young families. He further notes that the rise in birth rates has contributed to the steady increase in property prices, with a temporary decline in 2018 prompting renters to transition into homeownership, particularly among first-time buyers.

In terms of rental demand, the vacancy rate in the 4077 postcodes, encompassing Durack, Inala, and Richlands, has remained consistently low for the past two decades, never exceeding 2.8 per cent and dipping below two per cent since mid-2020. Currently, the vacancy rate stands at a mere 0.4 per cent, exerting significant upward pressure on residential rents within the Inala precinct.

Hotspotting’s report adopts a comprehensive approach by considering various essential factors in determining the best property investment locations. These factors encompass rising sales activity, the potential for capital growth, the availability of affordable housing, robust infrastructure, and proximity to major employment hubs. 

By thoroughly analysing these criteria, the report strives to provide an inclusive evaluation of the top five locations across Australia’s capital cities, assisting buyers in making informed decisions.

Published 2-June-2023