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What will happen in Adelaide’s real estate market? Will prices go up or down? Is Adelaide still a hotspot for investors? How are local government policies impacting real estate in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Adelaide, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Foreign investment in Adelaide real estate will drop due to stricter regulations being enforced
The Australian government has recently tightened rules on foreign property ownership, introducing higher taxes and stricter regulations.
In South Australia, foreign buyers now face a 7% Foreign Ownership Surcharge on residential properties. This move aims to ensure that foreign investors contribute fairly to the local economy. Similar policies in cities like Sydney and Melbourne have historically led to a drop in foreign property purchases, hinting that Adelaide might see a similar trend as these rules take hold.
Real estate agencies in Adelaide are already noticing a change, with a decrease in inquiries from foreign buyers. This shift suggests a change in market dynamics, potentially leading to fewer foreign investments. Financial institutions like Westpac and NAB are also predicting a downturn in foreign investment in Adelaide's real estate market due to these new regulations.
Property developers in Adelaide might start focusing more on local buyers, which could further reduce foreign investment. This shift in strategy reflects the changing landscape of the real estate market in the city. As these regulations continue to impact the market, Adelaide's real estate scene is likely to evolve, with local buyers playing a more significant role.
Sources: Broadland Estates, OpenAgent
2) Affordable housing prices in Adelaide will rise steadily as demand exceeds supply
Adelaide's housing market has been on a steady rise, with the average house price reaching $909,476 by June 2024.
Over the past decade, house prices in Adelaide have surged by 82.3%, largely driven by the pandemic boom that pushed property values up significantly.
Adelaide's population growth has played a crucial role in this trend. In 2023, Australia's population grew by 2.5%, with 549,000 new arrivals from overseas, many of whom settled in Adelaide, intensifying the demand for housing.
The rental market is feeling the squeeze too. As of October 2024, Adelaide's rental vacancy rate was just 1.13%, much lower than the national average, highlighting the severe shortage of available rental properties.
Government reports point to a 7.4% annual rise in median advertised rents, a situation worsened by a 35% drop in rental supply since pre-pandemic times. This shortage is further compounded by rising construction costs and limited land for new developments.
These factors are collectively driving up the prices of affordable housing in Adelaide, as demand continues to outpace supply, making it a challenging market for potential buyers.
Sources: Real Estate, Population.gov.au, InDaily SA, Property Update, Savings.com.au

We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Rental yields in coastal areas will drop as property prices rise faster than rents
Rental yields in coastal areas like Adelaide are expected to decline because property prices are rising faster than rents.
Take Christies Beach, for instance. The median house price has jumped to $700,000, but the median rent is only $550 per week. Semaphore Park tells a similar story, with house prices soaring to $935,000 and rents at just $600 per week. These numbers highlight how property values are climbing much faster than rental prices.
In 2023 and 2024, reports showed that Adelaide's property market experienced historic growth. House prices rose by 82.3% over the last decade, but rental prices haven't kept up. SQM Research confirmed this trend, noting a 15.4% increase in house prices over the last year without a corresponding rise in rents.
Sources: OpenAgent, Property Update, InvestorKit, Savings.com.au
4) Property prices in North Adelaide will fall as new developments elsewhere attract more interest
New residential developments are springing up outside of North Adelaide, with areas like Aldinga seeing a boom.
In Aldinga, at least 800 new homes are planned, focusing on sustainability and affordability, which is a big draw for potential buyers. These developments are making places like North Adelaide less attractive by comparison.
The South Australian government is sweetening the deal with a $15,000 grant and stamp duty exemption for first-home buyers in these up-and-coming suburbs. This makes it financially smarter to look at new areas rather than sticking with established ones like North Adelaide.
Infrastructure is also getting a boost, with plans to extend the Seaford rail line to Aldinga, improving connectivity and making these new areas even more appealing. This kind of development is hard to ignore for anyone considering a move.
Media reports and surveys show that people are leaning towards modern amenities and sustainable living, which these new developments offer. This shift in preferences could mean less interest in older areas like North Adelaide.
Looking at other cities, when new developments and infrastructure improvements happen, property prices in older areas often decline. This trend might just hit North Adelaide as well.
Sources: We Are SA, Cohen Handler, Realestate.com.au
5) Rental yields in the city center will rise as young professionals flock to urban areas
Rental yields in Adelaide's city center are on the rise as more young professionals flock to urban living.
In the heart of Adelaide, the demand for rental properties is heating up, with rental rates climbing steadily in the CBD office market. This trend is evident from the recent uptick in rental prices, where prime gross effective rents jumped by 3.4% and secondary rents by 3.27% in 2024. It's clear that city center properties are in high demand.
Adelaide's young professional crowd is growing, especially in areas like the City of Unley. This shift suggests that more young people are choosing to live in urban areas, likely drawn by the job opportunities and higher employment rates found in the city center. The urban lifestyle is a magnet for young talent.
Urban living offers young professionals the convenience of being close to amenities, entertainment, and public transport. This preference is well-known and is a key factor in the increasing demand for city center rentals. The rise of new businesses and startups in the Adelaide CBD, providing high-quality workspaces and dynamic environments, is another draw for young professionals.
With more young professionals moving in, the city center is becoming a vibrant hub. The influx is not just about jobs; it's about the lifestyle that urban living offers. The proximity to everything from cafes to cultural events makes city life appealing, and this lifestyle shift is driving rental demand.
As Adelaide continues to evolve, the city center is poised to become even more attractive to young professionals. The combination of job opportunities, lifestyle perks, and a thriving business scene makes it a hotspot for those seeking urban living. Rental yields are expected to keep climbing as this trend continues.
Sources: City of Unley, AIHW, Commo
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6) Property values in Glenelg will rise significantly as more people desire beachside living
Glenelg is becoming a hot spot for those dreaming of a beachside lifestyle.
With Adelaide's property market on the rise, Glenelg is catching the eye of many homebuyers. The suburb's charm isn't just about the beach; it's also a favorite tourist destination, drawing in over 1 million visitors each year. This popularity boosts the local economy and makes properties here even more desirable. A recent sale on Gower Street for $1.7 million shows just how valuable homes in this area can be.
The shift to remote work is another factor making Glenelg attractive. More people now have the freedom to live where they want, and many are choosing the coastal lifestyle. The City of Holdfast Bay is also investing in the area, with plans to revamp Jetty Road. This means better infrastructure and amenities, which will likely draw in more residents and businesses.
Experts from NAB and Westpac are predicting significant growth in Adelaide's property prices, and Glenelg is set to benefit from this trend. The suburb's ongoing development and its appeal as a flexible living location make it a prime spot for property investment.
As more people seek the beachside living experience, Glenelg's property values are expected to rise. The combination of its tourist appeal, local investments, and the broader market trends all point to a bright future for this coastal suburb.
For those considering a move or investment, Glenelg offers a unique blend of lifestyle and opportunity. The suburb's growth potential is backed by strong market indicators and a commitment to enhancing its community and infrastructure.
Sources: OpenAgent, Holdfast Bay Council, API Magazine, Holdfast Bay Council
7) Demand for smaller, affordable units in Adelaide will grow as single-person households increase
Single-person households in Adelaide have surged by 78% over the past 30 years, driving a need for smaller, affordable homes.
With property prices climbing, compact units are becoming the go-to choice for those seeking budget-friendly options. This demand-supply gap is nudging prices upward, making smaller spaces more appealing.
Adelaide's aging population is also leaning towards smaller, easier-to-manage homes. Initiatives like the City of Unley's Cohousing for Ageing Well are stepping up, offering creative housing solutions for seniors.
These demographic shifts are reshaping the housing market, with increased interest in innovative living arrangements that cater to both young professionals and older residents.
As more people opt for solo living, the demand for compact, affordable units is set to rise, reflecting broader lifestyle changes.
Investors and developers are taking note, recognizing the potential in strategically investing in smaller properties to meet this growing demand.
Sources: Department of Human Services South Australia, We Connect Property, City of Unley
8) Norwood will grow in popularity because of its lively café scene and closeness to the city
Norwood is quickly becoming a favorite for those who love a lively café culture and want to be close to the city.
In 2024, property prices in Norwood rose significantly, reflecting its growing popularity. The area saw a jump in dining and hospitality spending, from $2.2 million in 2023 to $3.7 million, showing that more people are drawn to its vibrant lifestyle and café scene.
Foot traffic in Norwood has increased, and new businesses are popping up, adding to its charm. During the 2024 AFL Gather Round, $6.6 million was spent on dining and hospitality, with a significant $5.7 million coming from visitors outside the area. This influx of visitors highlights Norwood's growing appeal as a destination for dining and socializing.
Norwood's charm isn't just local; it's recognized internationally. Time Out magazine listed it as one of the 38 coolest neighborhoods in the world, which underscores its appeal to those who value a lively social scene and a unique lifestyle.
Locals and visitors alike are drawn to Norwood's vibrant café culture, which is a key factor in its rising popularity. The suburb's proximity to the city makes it an attractive option for those looking to enjoy both urban convenience and a lively community atmosphere.
With its bustling streets and welcoming vibe, Norwood is set to become even more popular. The combination of new businesses, increased spending, and international recognition makes it a hotspot for anyone looking to invest in a property with a lively and engaging environment.
Sources: NPSP Media Releases, Magill Road Blog

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Price growth in Unley will slow down as the market becomes saturated
Unley, a charming inner-city suburb of Adelaide, is known for its high property prices compared to nearby areas.
With a median listing price of $1,500,000, Unley stands out, suggesting that buyers might be hitting their limit on what they're willing to pay. In recent years, particularly in 2023 and 2024, the growth in property prices has started to slow down. For instance, the median price change in Unley was 15.38%, which is less than the overall median price change for Adelaide units at 18.0%. This hints that the rapid growth of the past might be cooling off.
Homes in Unley are also taking longer to sell, averaging 30 days on the market compared to the city's average of 27 days. This extra time could mean that demand isn't as strong as it used to be, likely due to the steep prices.
On top of that, Unley is seeing a higher vacancy rate in rental properties, currently at 20%, which is more than some other parts of Adelaide. This might suggest that the demand for rentals is dropping, another clue pointing to market saturation.
These factors combined indicate that Unley might be reaching a point where the market is saturated, and price growth could slow down. If you're considering buying property here, it's worth keeping an eye on these trends.
Sources: Real Estate Investar, OpenAgent
10) Adelaide will become more appealing to first-time buyers due to changes in property tax laws
Adelaide is becoming a hotspot for first-time home buyers due to recent changes in property tax laws.
One major change is the increase in the transfer duty exemption threshold from $650,000 to $800,000 in 2023. This means if you're a first-time buyer, you can now purchase a home up to $800,000 without paying transfer duty, which significantly cuts down your initial costs.
There's also the First Home Owner Grant (FHOG), which offers a $15,000 grant for new homes valued under $650,000. This grant is a big help in reducing upfront expenses, making it easier for newcomers to step into the market.
In 2024, home values have stabilized, creating a more balanced market. This stability, along with financial incentives, makes it a great time for first-time buyers to consider Adelaide.
Regional housing markets in South Australia, including Adelaide, have shown a 6.0% annual growth in 2024. This growth, combined with affordability, makes Adelaide an attractive option for those looking to invest in their first home.
These factors have sparked increased interest in entry-level housing, as seen in market trends and media reports.
Sources: Lynch Meyer, Teach Me About Property, SMSF Consulting
11) More European buyers will enter Adelaide’s property market seeking stable investments
European investors are increasingly eyeing Adelaide's property market as a stable investment opportunity.
In 2022-2023, foreign buyers, including Europeans, made 5,360 residential real estate purchases in Australia, marking a significant rise from the previous year. This surge highlights a growing interest from European investors in the Australian property scene.
The economic climate in Europe has been a driving factor. With high interest rates and economic uncertainty, European investors are seeking more stable markets. Adelaide offers both stability and growth potential, making it an attractive choice for these investors.
Favorable exchange rates for European currencies against the Australian dollar have also played a role. This financial edge, coupled with Australia's safe political environment and high quality of life, makes it an appealing investment destination.
Adelaide's property market is particularly enticing due to its potential for long-term growth. European buyers are drawn to the city's promise of stability and return on investment.
As European investors continue to seek out reliable markets, Adelaide stands out as a prime location for property investment.
Sources: DWS, Asia Property Awards
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12) Property prices in Adelaide will be affected as stricter environmental rules raise development costs
In Adelaide, stricter environmental regulations are set to make new property developments more expensive.
One key factor is the need to comply with sustainable building certifications like BREEAM or LEED, which can add about 2% to construction costs. This includes fees for consulting, certification, and installing energy-efficient technologies like solar panels.
As demand for eco-friendly materials rises, their prices are expected to climb, further increasing construction costs. While renewable energy solutions like solar panels are initially pricey, they promise savings over time.
Investing in energy-efficient technologies can be costly upfront, though they reduce long-term operating expenses. However, properties not meeting new environmental standards face higher insurance premiums, adding to the financial burden.
Developers and property owners in Adelaide are feeling the pinch as these regulations drive up costs. The push for sustainability is reshaping the market, making it crucial for buyers to consider these factors.
Understanding these dynamics can help potential buyers navigate the evolving property landscape in Adelaide, where environmental compliance is becoming a key consideration.
Sources: InDaily SA, Windsor Capital, Zero Consulting
13) Adelaide’s property prices will keep rising because demand is growing and land supply is limited
Adelaide's residential property prices are steadily climbing and show no signs of slowing down.
One big reason for this is the limited land available for new development. With not much space left to build, existing properties become more valuable, naturally pushing prices higher.
Adelaide's population is also on the rise, with many people moving in from other parts of Australia and overseas. This influx means more folks are hunting for homes, which boosts demand and, consequently, prices.
The rental market in Adelaide is another piece of the puzzle. With vacancy rates consistently below 1%, finding a rental is tough. This scarcity makes renting competitive, nudging more people to consider buying instead.
As more people opt to buy, the demand for properties increases, further driving up prices. The combination of a growing population and a tight rental market creates a perfect storm for rising property values.
In short, Adelaide's property market is hot, and with limited land and increasing demand, prices are likely to keep climbing.
Sources: Savings.com.au, Population.gov.au, Realestate.com.au
14) Property prices in Prospect will fall as nearby areas offer more competitive new developments
New housing developments in suburbs like Seaton and Noarlunga Downs are shaking up the property market.
These areas are buzzing with fresh homes, including affordable and social housing, which are drawing in buyers thanks to their competitive prices and modern amenities. Seaton, for instance, isn't just about homes; it's about lifestyle, with revamped parks and streetscapes that make it a magnet for those wanting a better living environment.
Over in Aldinga, the focus is on sustainability. The development there boasts high-efficiency buildings and community amenities, ticking the boxes for eco-conscious buyers. It's not just about a house; it's about a future-proof lifestyle.
Real estate experts are seeing a clear shift. Buyers are gravitating towards these new developments because they offer better value and more amenities than older suburbs like Prospect. This isn't just a local trend; it's a pattern seen in other regions where new builds have caused older areas to lose their shine.
Prospect, once a sought-after suburb, is feeling the heat. With neighboring areas offering more bang for the buck, it's no surprise that property prices in Prospect are expected to dip.
As these new developments continue to rise, the appeal of older suburbs is waning, making it a challenging time for sellers in areas like Prospect.
Sources: We Are SA, Realestate.com.au, We Are SA

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) Rental yields in the Adelaide Hills will rise as lifestyle properties become more popular
Rental yields in the Adelaide Hills are on the rise as more people are drawn to lifestyle properties.
Over the past few years, especially in 2023 and 2024, the Adelaide Hills have become a hotspot for those seeking a blend of rural charm and urban convenience. Property values have jumped by 14.41% in just the last year, thanks to families, young professionals, and retirees craving a better quality of life. This surge in interest naturally boosts the demand for rentals.
There's a noticeable shift in demographics, with more people opting for rural living. The Adelaide Hills offer the perfect escape with their spacious and natural surroundings. The rise of remote work has made it easier for people to live away from city centers, making places like the Hills even more appealing.
Infrastructure improvements are also a game-changer. With better transportation links, the region is more accessible than ever. This increased accessibility adds to the area's attractiveness, drawing in more potential renters and buyers.
Low vacancy rates are another factor contributing to the robust real estate market in the Adelaide Hills. Rising rental yields are a clear indicator of this strength, making it a promising area for property investment.
As more people seek lifestyle properties, the Adelaide Hills are poised for continued growth. The combination of demand, accessibility, and quality of life makes it a prime location for those looking to invest in real estate.
Sources: Phoenix Lending, Realestate.com.au
16) Suburban rental yields will drop as more people buy homes thanks to favorable interest rates
In 2023 and 2024, more people are buying homes instead of renting due to favorable interest rates.
Adelaide Bank, for instance, lowered their Variable Rate Loan interest by 0.25% per annum in March 2023, making home loans more accessible. This change has made it easier for many to secure loans and step into homeownership. The government is also playing a part by offering incentives like reduced stamp duty for first-time buyers, which is nudging more people into the property market.
These incentives are not just numbers on paper; they are actively encouraging people to buy homes, which in turn reduces the demand for rentals. As a result, suburban areas are seeing fewer rental applications, leading to a dip in rental yields. This trend is particularly noticeable in areas where new housing developments are popping up, providing more options for potential homeowners.
Real estate market reports are backing this up, showing a clear rise in home sales. This increase in sales often goes hand in hand with a drop in rental applications, indicating that more people are choosing to own rather than rent. The construction boom in suburban areas is adding to the housing supply, which further eases the pressure on rental markets.
With more homes being built, the supply of housing options is growing, which naturally reduces the demand for rentals. This is a key factor in the declining rental yields in suburban areas. The trend is clear: as homeownership becomes more attainable, fewer people are looking to rent.
For those considering buying property, this shift means that now might be a good time to explore homeownership, especially with the current interest rates and government incentives. The landscape is changing, and suburban rental yields are feeling the impact as more people make the leap to owning their homes.
Sources: Adelaide Bank, Property Update, Loans.com.au
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.