I guess the decision comes down to proximity to the beach vs access to the city.
Exactly.
Personally I'm not overly familiar with the Southern suburbs as much, so can't comment on their yield prospects, although I would hazard a guess to say that rents are increasing there too (can anyone more knowledgable on the South comment?). Adelaide is still having record low rental vacancies - from memory North is just over 1%, and South is just under 1%.
As an IP - I wouldn't have a problem buying in either area. To live, I prefer the North Eastern suburbs as they are closer to my work (next to CBD). I also just have a general preference to the north-east subrubs as it's the side of Adelaide I've grown up near, and intend to stay closer to. My brother has been down south for years, and whilst it's nice, I just prefer the other side of town. But this is a highly personal decision, so not relevant.
Assuming travel to the CBD isn't an issue - the southern suburbs do have the appeal of being closer to the beach as you said. Christies Beach is nice, and very close to the beach. O'Sullivan Beach is a bit further away from the beach as such as that beach is no good, and there is the refinery there etc. (hence the price discount).
The distance to the CBD is further to the southern suburbs you mentioned - 25km vs. 12-18km in the north east suburbs, but the expressway has cut down the travel time in recent years. I do however also like the NE suburbs as proximity to CBD is an important factor for me.
Yields are getting worse in the suburbs I've been looking at. Rents have been increasing quite well, but price growth has been outpacing that in recent months.
) - median house price $255,000
