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Adelaide's rental property market offers attractive yields for investors, with apartments delivering the strongest returns at around 5.7% gross yield, while houses average 4.1%. The city's record-low vacancy rates of 0.7-0.8% support stable rental income, making it an appealing destination for property investment compared to other Australian capitals.
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Adelaide delivers solid rental yields with apartments outperforming houses, northern suburbs leading returns, and vacancy rates among Australia's lowest.
Investors can expect gross yields of 4.1% for houses and 5.7% for apartments, with outer suburbs like Elizabeth Vale achieving over 6% returns.
| Property Type | Average Gross Yield | Best Performing Areas |
|---|---|---|
| Houses | 3.7% - 4.2% | Elizabeth North, Elizabeth Downs |
| Apartments/Units | 5.0% - 5.7% | Elizabeth Vale, Salisbury, CBD |
| Townhouses | 4.4% - 5.0% | Mid-tier suburbs |
| Vacancy Rate | 0.7% - 0.8% | City-wide average |
| Net Yield (after expenses) | 2.4% - 3.9% | Varies by property type |
| Comparison to Sydney | +1.1% - 1.7% higher | Significant advantage |
| Comparison to Melbourne | +0.4% - 1.7% higher | Competitive edge |
What's the current average rental yield across Adelaide as a whole?
As of September 2025, Adelaide's average gross rental yield stands at 4.1% for houses and 5.7% for apartments and units.
Houses across Adelaide suburbs typically deliver gross yields between 3.7% and 4.2%, making them competitive compared to other Australian capitals. The Adelaide residential property market has maintained these yield levels despite significant capital growth over recent years.
Apartments and units significantly outperform houses with average gross yields reaching 5.0% to 5.7% across the city. Some high-performing unit developments in outer suburbs achieve yields exceeding 6%, particularly in areas like Elizabeth Vale and Salisbury.
These figures represent gross yields before accounting for ongoing expenses like property management, council rates, and maintenance costs. Net yields typically run 1.5-2% lower after deducting standard property investment expenses.
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How do yields differ between houses, townhouses, and apartments?
Apartments deliver the strongest rental yields in Adelaide, followed by townhouses, with houses providing the lowest returns.
Houses across Adelaide generate gross rental yields between 3.7% and 4.2%, with most suburban properties falling within this range. The lower yields reflect higher median purchase prices relative to achievable rental income, particularly in established neighborhoods.
Townhouses typically yield between 4.4% and 5.0%, depending on their location and size. These properties often attract young families and professionals, creating steady rental demand that supports mid-tier yield performance.
Apartments and units consistently outperform other property types with yields ranging from 5.0% to 5.7% on average. High-demand apartment buildings in strategic locations can achieve yields above 6%, especially in outer suburbs with lower purchase prices but strong rental demand.
Which suburbs in Adelaide show the highest rental yields right now, and which ones lag behind?
| Suburb | Property Type | Gross Yield |
|---|---|---|
| Elizabeth Vale | Unit | 6.6% |
| Salisbury | Unit | 6.3% |
| Adelaide CBD | Unit | 6.1% |
| Elizabeth North | House | 5.6% |
| Elizabeth Downs | House | 5.6% |
| Glenelg | Unit | 5.5% |
| Norwood | Various | 5.2% |
What's the median property price in those high-yield suburbs, and how much rental income does that typically translate to per week or per month?
Elizabeth Vale leads Adelaide's rental yield performance with units achieving 6.6% gross returns on a median price of $300,000.
Properties in Elizabeth Vale generate approximately $350 per week in rental income, translating to $18,200 annually on the median unit price. This combination of affordable entry prices and solid rental demand creates exceptional yield opportunities for investors.
Salisbury units deliver 6.3% yields on a median price of $361,000, generating around $400 weekly rental income or $20,800 annually. The suburb's proximity to transport links and shopping centers supports consistent tenant demand.
Adelaide CBD units achieve 6.1% yields despite higher median prices of $500,000, generating $580 weekly rental income or $30,160 annually. The premium location commands higher rents that offset the increased purchase costs.
Elizabeth North and Elizabeth Downs houses both deliver 5.6% yields, with median prices around $485,000-$502,500 generating $450-$455 weekly rental income or approximately $23,400-$23,660 annually.
How do yields in inner-city Adelaide compare with those in outer suburbs?
Inner-city Adelaide delivers competitive yields through higher rental rates, while outer suburbs achieve strong returns via lower purchase prices.
Adelaide CBD units generate up to 6.1% gross yields, benefiting from premium rental rates of $580 per week on median prices around $500,000. The central location attracts professionals and students willing to pay higher rents for convenience and lifestyle benefits.
Outer suburbs like Elizabeth Vale and Salisbury consistently outperform with yields exceeding 6% for units. These areas combine affordable median prices between $300,000-$361,000 with solid rental demand from families and working-class tenants.
Northern suburbs generally provide the highest yields across Adelaide, with areas like Elizabeth North achieving 5.6% returns for houses. The lower property prices in these locations create opportunities for higher percentage returns despite modest rental rates.
Premium inner suburbs like Norwood and Glenelg offer yields around 5.2-5.5%, reflecting their established nature and higher median prices. While returns are lower, these areas often provide better capital growth prospects and tenant stability.
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How do rental yields in Adelaide compare with other major South Australian cities and nearby capitals like Melbourne or Sydney?
Adelaide significantly outperforms Sydney and Melbourne across all property types, offering investors 1-2% higher gross rental yields.
Adelaide houses generate 3.7-4.2% gross yields compared to Sydney's 3.0% and Melbourne's 3.7%. This 0.4-1.2% advantage provides Adelaide property investors with notably better cash flow returns on similar property types.
The yield advantage becomes even more pronounced for apartments and units. Adelaide units average 5.7% gross yields while both Melbourne and Sydney units typically achieve only 4.0%, creating a substantial 1.7% yield differential.
Perth units deliver approximately 5.0% yields, making Adelaide units competitive within the Australian apartment market. However, Adelaide's record-low vacancy rates provide additional security for rental income that Perth cannot match.
The national average for rental yields sits around 3.7-4.9%, positioning Adelaide above the median for units and competitive for houses. Combined with lower median property prices, Adelaide offers superior entry-level investment opportunities compared to eastern capitals.
What's been the trend in Adelaide rental yields over the past 5–10 years?
Adelaide rental yields have declined slightly over the past decade due to rapid capital growth but have stabilized since 2021 around current levels.
Between 2015-2020, yields gradually decreased as property prices grew faster than rental rates. Houses that previously delivered 4.5-5.0% yields dropped to the current 3.7-4.2% range as median prices increased significantly.
The period from 2021-2025 has seen yield stabilization as rental demand strengthened and vacancy rates plummeted to record lows of 0.6-0.8%. Strong rental market conditions have helped maintain yield levels despite continued price growth.
Apartment yields have remained more resilient, maintaining the 5.0-5.7% range throughout most of the decade. The consistent demand for rental apartments has supported rental rate growth that keeps pace with capital value increases.
Current market conditions suggest yields will remain stable through 2025, with record-low vacancy rates supporting rental growth that should match moderate property price increases.
What are the biggest factors that make yields vary the most — property type, location, or tenant demand?
1. **Location impact**: Northern and outer suburbs consistently deliver yields 1-2% higher than premium inner areas due to lower purchase prices and steady rental demand.2. **Property type significance**: Apartments outperform houses by 1.5-2% on average, with units in high-demand areas achieving yields exceeding 6%.3. **Local tenant demand**: Areas with diverse employment, transport access, and educational facilities maintain higher occupancy and rental rates.4. **Affordability dynamics**: Suburbs with median prices below $400,000 typically generate higher percentage yields despite lower absolute rental income.5. **Infrastructure and amenities**: Proximity to shopping centers, public transport, and employment hubs directly influences rental demand and achievable rates.What ongoing expenses have the largest impact on reducing net yield — like council rates, property management fees, or maintenance costs?
Property management fees represent the largest single expense impact on Adelaide rental yields, typically consuming 6-8% of gross rental income.
For a property generating $400 weekly rent, professional property management costs approximately $24-32 per week or $1,248-1,664 annually. This expense alone can reduce gross yields by 0.3-0.5% depending on the property value.
Council rates impose significant fixed costs, typically exceeding $2,000 annually for most Adelaide properties. These rates vary by suburb and property value but represent a substantial reduction in net yield regardless of rental performance.
Maintenance and repair costs average approximately 1% of the property's value annually. For a $500,000 property, this translates to $5,000 yearly in upkeep expenses, significantly impacting net returns.
Insurance premiums, strata fees for units, and periodic vacancy periods further reduce net yields. Combined, these expenses typically reduce gross yields by 1.5-2.0%, making net yields substantially lower than advertised gross figures.
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.
What are the average vacancy rates across Adelaide suburbs, and how do they influence achievable yields?
Adelaide maintains exceptionally low vacancy rates averaging 0.7-0.8% across the city, among the lowest rates in Australia.
These record-low vacancy rates provide investors with exceptional rental security and minimal downtime between tenancies. Properties typically experience less than 3 days vacancy per year, ensuring consistent cash flow throughout ownership periods.
The tight rental market enables landlords to achieve asking rents without significant negotiation or rental discounts. This pricing power directly supports the higher yields Adelaide delivers compared to cities with higher vacancy rates.
Low vacancy rates also reduce the risk of extended vacancy periods that can significantly impact annual returns. Investors can reliably project rental income without substantial vacancy allowances in their financial calculations.
The combination of low vacancy and strong tenant demand creates upward pressure on rental rates, supporting yield maintenance even as property values continue increasing.
How does Adelaide's rental yield performance compare with national averages across Australia?
Adelaide rental yields exceed national averages, particularly for apartments and units where the city leads major Australian markets.
National average rental yields typically range from 3.7-4.9%, placing Adelaide houses at the upper end with 3.7-4.2% returns. Adelaide apartments significantly outperform with 5.7% yields compared to the national average of approximately 4.5%.
Adelaide's competitive advantage stems from the combination of moderate property prices and strong rental demand. While cities like Sydney command higher rental rates, their elevated property prices result in lower percentage yields for investors.
The city's rental yield performance becomes even more attractive when considering risk factors. Adelaide's stable economy, low vacancy rates, and consistent rental demand provide yield security that many other Australian markets cannot match.
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If an investor buys a $500,000 property in Adelaide, what would be the expected gross and net rental income per year after accounting for typical expenses?
| Property Type | Gross Annual Income | Net Annual Income |
|---|---|---|
| House ($500,000) | $20,500 | $12,065 |
| Unit ($500,000) | $28,500 | $19,505 |
| Weekly Net (House) | - | $232 |
| Weekly Net (Unit) | - | $375 |
| Net Yield (House) | - | 2.4% |
| Net Yield (Unit) | - | 3.9% |
| Annual Expenses | - | $8,435-$8,995 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Adelaide's rental property market presents compelling opportunities for investors seeking strong cash flow returns in Australia's current environment.
The combination of competitive yields, record-low vacancy rates, and moderate property prices positions Adelaide as an attractive alternative to higher-priced eastern capitals.
It's something we develop in our Australia property pack.
Sources
- BambooRoutes Adelaide Rental Yield Analysis
- Property NXT Australia Adelaide Property Report
- OpenAgent Highest Rental Yield Suburbs
- Global Property Guide Australia Rental Yields
- CoreLogic Rental Review Report
- Wise Australia Rental Yield Guide
- SQM Research Adelaide Weekly Rents
- Statista Adelaide Vacancy Rates
- PropertyMe Market Update
- Canstar Best Adelaide Suburbs