Tourism makes a significant contribution to South Australia’s economy, generating $11.5 billion in visitor spending across the state. That spending supports businesses and communities across Adelaide and regional South Australia, but tourism’s influence can also extend to the property market.
For anyone considering South Australian property investment, that makes tourism another factor worth considering when deciding where to buy.
How can tourism affect South Australian property investment?
Popular visitor destinations need plenty of accommodation, and some of that demand is met by short stay properties.
When a large number of homes are used for short stays, it can change the number of properties available for long term rental. This may have a flow-on effect on rental supply, rents and property prices.
But tourism alone doesn’t make an area a good investment.
Glenelg, the Adelaide CBD, the Adelaide Hills and the Fleurieu Peninsula all attract visitors, but their property markets are very different. That’s why it’s important to look at what’s happening locally rather than simply choosing an area because it’s popular with tourists.
What should property investors look at?
A location might be packed with visitors over summer or on long weekends, but what happens for the rest of the year?
For a long term South Australian property investment, you need to look at the year-round market.
Is the local population growing? Are there employment opportunities nearby? Is there consistent demand for long term rentals? What shops, schools, public transport, healthcare and other everyday amenities are available nearby?
Vacancy rates, achievable rent and property prices matter too. Together, these factors can give you a much clearer picture of how appealing an area may be to long term tenants and whether it suits your investment goals.
Is tourism a reason to invest in an area?
Tourism can be part of the picture, but it shouldn’t be the whole picture.
A strong tourism industry can support the local economy and influence demand for property. But a long term investment still needs to stack up based on the local property and rental market.
If you’re researching South Australian property investment, the AMKAR Real Estate team can provide local property and rental market insights to help you better understand the areas you’re considering.
This article provides general information only and does not constitute financial or investment advice. You should seek independent professional advice appropriate to your circumstances.