Blood 'found in car' of SA murder accused

The blood of missing South Australian Dale McCauley was found in a car used by his housemate, a court has heard.

Adrian Mahony, 65, was charged on Tuesday with the 1998 murder of Mr McCauley following a cold-case review by major crime detectives.

Mr McCauley was last seen at his Willunga home, south of Adelaide, in January 1998 and his remains have never been found.

In the Adelaide Magistrates Court on Wednesday, prosecutor Sue Agnew argued that Mahony was a flight risk and should not be granted bail.

But Magistrate Sue O'Connor said the prosecution case appeared to be "solely circumstantial" and ordered a report to determine if Mahony was suitable for home detention bail.

Ms Agnew told the court that Mahony was living on Mr McCauley's property at the time of his disappearance and the pair were co-owners of a yacht.

The court heard that new DNA tests had detected Mr McCauley's blood on the rear seat of a car used by Mahony which belonged to his son.

Prosecutors allege that Mahony forged a receipt for the purchase of Mr McCauley's share of the yacht before selling it on several months later.

He was interviewed by police but is alleged to have travelled overseas immediately after his housemate disappeared.

"Police believe that his behaviour was indicative of him attempting to avoid investigation," Ms Agnew told the court.

Defence lawyer Tim Blake asked the court to order a home detention report, saying Mahony was willing to surrender his passport.

Magistrate O'Connor granted the request, saying she was unconvinced Mahony was a flight risk.

"The man has been interviewed last November and he hasn't fled," she said.

She is expected to decide whether Mahony, who remains in custody, should be granted bail when he faces court again on Tuesday.

Mr McCauley's older sister and sole surviving relative, Sandra Cole-Stokes, earlier urged whoever killed her brother to reveal where his remains are buried

"I want to bring him back home," she told reporters.