Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
Adelaide's rental market offers some of Australia's most attractive yields, particularly for units and properties in northern suburbs.
As of June 2025, Adelaide units are delivering gross rental yields of approximately 5.7%, significantly outperforming houses which average between 3.7% and 4.2%. The city's tight vacancy rate of just 0.7% creates a landlord-friendly environment with minimal downtime and stable rental income. Northern suburbs like Elizabeth Vale and Salisbury are leading the charge with yields exceeding 6%, making them prime targets for yield-focused investors.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Adelaide's rental yields range from 3.7-4.2% for houses and up to 5.7% for units, with northern suburbs like Elizabeth Vale delivering the highest returns at 6.6%.
The city's 0.7% vacancy rate and ongoing infrastructure development in key areas support strong rental demand and stable income streams for property investors.
| Property Type | Average Gross Yield | Top Performing Suburbs | Weekly Rent Range |
|---|---|---|---|
| Houses | 3.7% - 4.2% | Elizabeth North, Elizabeth Downs | $450 - $550 |
| Units | 5.7% | Elizabeth Vale, Salisbury, Adelaide CBD | $350 - $580 |
| 2-Bedroom Units | 5.5% - 6.6% | Elizabeth Vale, Adelaide CBD | $350 - $450 |
| 3-Bedroom Houses | 4.0% - 5.6% | Elizabeth North, Elizabeth | $450 - $550 |
| CBD Properties | 6.1% | Adelaide Central | $580 |
| Premium Suburbs | 5.2% - 5.5% | Glenelg, Norwood | $620 - $635 |
| Outer North | 5.4% - 6.6% | Elizabeth, Salisbury | $350 - $450 |
What are the current average gross rental yields in Adelaide for houses and units?
Adelaide's rental yields show a clear distinction between property types as of mid-2025.
Houses in Adelaide are currently delivering gross rental yields between 3.7% and 4.2%. This represents a slight decline from the previous year when yields averaged around 3.9%, primarily due to strong capital growth outpacing rental increases.
Units significantly outperform houses with an average gross rental yield of approximately 5.7%. This higher yield reflects the strong demand for apartment living in Adelaide, particularly from students, young professionals, and downsizers. Units have maintained stable yields despite the broader market trends, with some areas even seeing slight increases.
The difference between house and unit yields is substantial - units deliver approximately 1.5 percentage points higher returns than houses. This gap makes units particularly attractive for yield-focused investors seeking regular income streams.
It's something we develop in our Australia property pack.
How do yields differ across Adelaide suburbs like the CBD, Glenelg, Norwood, and Elizabeth?
Adelaide's rental yields vary significantly across different suburbs, with location being the primary driver of performance.
| Suburb | Property Type | Gross Rental Yield | Median Price | Weekly Median Rent |
|---|---|---|---|---|
| Adelaide CBD | Unit | 6.1% | $500,000 | $580 |
| Elizabeth | House | 5.4% | $545,000 | $390 |
| Glenelg | Unit | 5.5% | $600,000 | $635 |
| Norwood | Unit | 5.2% | $620,000 | $620 |
| Elizabeth Vale | Unit | 6.6% | $300,000 | $350 |
| Elizabeth North | House | 5.6% | $485,000 | $450 |
| Salisbury | Unit | 6.3% | $361,000 | $400 |
What's the average weekly rent for a 2-bedroom unit versus a 3-bedroom house in high-yield areas?
Rental rates in Adelaide's high-yield areas show distinct patterns between unit and house configurations.
2-bedroom units in high-yield suburbs typically rent for around $450 per week. In specific high-performing areas like Elizabeth Vale, these units command approximately $350 per week, reflecting the more affordable nature of these outer suburbs while still delivering strong yields.
3-bedroom houses in similar high-yield areas average $550 per week in rent. In Elizabeth North, one of the top-performing suburbs for house yields, 3-bedroom properties rent for approximately $450 per week.
The $100 weekly rental difference between 2-bedroom units and 3-bedroom houses reflects the additional space and privacy that houses provide. However, when considered against purchase prices, units often deliver superior yield performance due to their lower entry costs.
These rental rates have remained relatively stable throughout 2025, with unit rents actually increasing by 8.5% over the past year, supporting the stronger yield performance of apartments compared to houses.
How have Adelaide's rental yields changed over the past 12 months—are they rising or falling?
Adelaide's rental yields have experienced mixed movements over the past 12 months, with clear differences between property types.
House yields have slightly declined from approximately 3.9% to the current range of 3.7-3.8%. This decrease is primarily attributed to strong capital growth that has outpaced rental increases. Property values have risen faster than landlords' ability to increase rents, compressing yield margins.
Unit yields have shown more resilience, remaining stable or experiencing slight increases. This stability is supported by unit rents rising 8.5% over the year, helping to maintain yield levels despite some capital growth. The tight vacancy rate has enabled landlords to secure consistent rental increases for apartment properties.
The overall Adelaide rental market remains fundamentally strong with yields holding steady or experiencing only marginal dips. The 0.7% vacancy rate continues to support landlord-favorable conditions, preventing significant yield erosion despite property value appreciation.
Market experts expect yields to stabilize as rental growth catches up with property value increases, particularly given the ongoing housing shortage and strong population growth in Adelaide.
Don't lose money on your property in Adelaide
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the top 5 suburbs in Adelaide with the highest rental yields right now, and what are their exact percentages?
Adelaide's highest-yielding suburbs are predominantly located in the northern and outer areas, where affordable property prices meet strong tenant demand.
| Rank | Suburb | Property Type | Gross Rental Yield | Median Price | Weekly Median Rent |
|---|---|---|---|---|---|
| 1 | Elizabeth Vale | Unit | 6.6% | $300,000 | $350 |
| 2 | Salisbury | Unit | 6.3% | $361,000 | $400 |
| 3 | Adelaide CBD | Unit | 6.1% | $500,000 | $580 |
| 4 | Elizabeth North | House | 5.6% | $485,000 | $450 |
| 5 | Elizabeth Downs | House | 5.6% | $502,500 | $455 |
How do rental yields in Adelaide compare to other major cities like Melbourne, Sydney, Brisbane, and Perth?
Adelaide stands out as one of Australia's most attractive rental yield markets, particularly for investors seeking higher returns.
Adelaide houses deliver yields of 3.7-4.2%, which matches Melbourne's 3.7% performance and significantly outperforms Sydney's 3.0%. Brisbane offers slightly lower yields at 3.6%, while Perth leads the house market at 4.2%.
The real advantage becomes apparent with units, where Adelaide's 5.7% average substantially outperforms Melbourne and Sydney (both around 4.0%), Brisbane (4.5%), and even Perth (5.0%). This 0.7-1.7 percentage point advantage makes Adelaide units particularly attractive for yield-focused investors.
Adelaide's competitive position is strengthened by its lower property prices compared to Sydney and Melbourne, allowing investors to enter the market with less capital while achieving superior yields. The city also benefits from lower vacancy rates than most other capitals.
When factoring in property management costs and ongoing expenses, Adelaide maintains its yield advantage, making it an optimal choice for investors prioritizing regular income over capital growth potential.
What are the biggest factors causing rental yield variations between different parts of Adelaide?
Several key factors drive the significant rental yield variations across Adelaide's diverse suburbs.
Location proximity to employment hubs, universities, and transport links creates substantial yield differences. Northern suburbs like Elizabeth and Salisbury offer higher yields due to lower property prices while maintaining strong tenant demand from blue-collar workers and families seeking affordable housing options.
Property type plays a crucial role, with units consistently outperforming houses across all areas. This reflects changing demographics and lifestyle preferences, particularly among young professionals and downsizers who prefer low-maintenance apartment living.
Development patterns and infrastructure investment significantly impact yields. Areas near transport corridors, shopping centers, and planned infrastructure projects attract higher rents. The Greater Adelaide Regional Plan's focus on higher-density housing in key centers like Elizabeth is already supporting yield performance in these areas.
Supply and demand dynamics vary considerably across suburbs. Adelaide's overall 0.7% vacancy rate masks significant variations, with some northern suburbs experiencing even tighter conditions that support premium rents and higher yields.
Affordability remains a critical factor, with median-priced suburbs often delivering the best yield-to-risk ratio for investors seeking stable returns without excessive capital requirements.
What's the median property price in the suburbs with the best yields, and what does that translate to in annual rental income?
Adelaide's top-yielding suburbs offer attractive entry points with strong income generation potential.
| Suburb | Property Type | Median Price | Weekly Rent | Annual Rental Income | Gross Yield |
|---|---|---|---|---|---|
| Elizabeth Vale | Unit | $300,000 | $350 | $18,200 | 6.6% |
| Salisbury | Unit | $361,000 | $400 | $20,800 | 6.3% |
| Elizabeth North | House | $485,000 | $450 | $23,400 | 5.6% |
| Adelaide CBD | Unit | $500,000 | $580 | $30,160 | 6.1% |
| Elizabeth Downs | House | $502,500 | $455 | $23,660 | 5.6% |
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 typical annual expenses for a rental property in Adelaide—rates, maintenance, management fees—and how do they affect net yield?
Understanding Adelaide's rental property expenses is crucial for calculating realistic net yields and investment returns.
Property management fees typically range from 7-11% of annual rental income, depending on the service level and property type. For a property generating $20,000 annually, this represents $1,400-$2,200 in management costs.
Council rates average $1,872-$2,000 per year across Adelaide, with variations based on property value and location. These rates are generally lower than Sydney or Melbourne, providing a cost advantage for Adelaide investors.
Maintenance expenses typically consume 1-4% of the property value annually. For a $400,000 property, budget $4,000-$16,000 yearly for repairs, maintenance, and property improvements. Newer properties generally sit at the lower end of this range.
Insurance costs approximately $121 per month or $1,452 annually for typical rental properties. Strata fees for units range from 0.3-1.2% of property value annually, adding significant costs for apartment investors.
After accounting for all expenses, net yields typically sit 1-2 percentage points below gross yields. A 6% gross yield property might deliver a 4-5% net yield after expenses, which remains competitive compared to other Australian markets.
It's something we develop in our Australia property pack.
Are new developments or older properties more profitable in terms of rental yield in Adelaide?
The choice between new developments and older properties in Adelaide depends on your investment strategy and risk tolerance.
New developments often command higher rents due to modern features, energy efficiency, and contemporary layouts that appeal to today's tenants. These properties typically require less immediate maintenance and may attract quality tenants willing to pay premium rents for modern amenities.
However, new developments usually come with higher purchase prices and potentially higher strata fees, which can compress gross yields. The initial premium paid for new construction may take several years to justify through rental performance.
Older properties in high-yield suburbs like Elizabeth North and Tonsley often provide superior yields due to lower entry prices. These properties may require more hands-on management and periodic maintenance but can deliver stronger immediate cash flow returns.
The trend shows new developments in established high-yield areas are successfully combining yield performance with modern appeal. Areas like Elizabeth North and Tonsley are seeing new projects that boost overall rental attractiveness while maintaining competitive yields.
For yield-focused investors, older properties in proven rental areas typically offer better immediate returns, while new developments may provide better long-term capital growth potential combined with lower maintenance requirements.
What is the vacancy rate across Adelaide, and how does it impact rental income and stability for investors?
Adelaide's rental market demonstrates exceptional tightness that strongly favors property investors.
The current vacancy rate sits at just 0.7% as of the February-April 2025 period, making Adelaide one of the tightest rental markets among Australian capital cities. This represents one of the lowest vacancy rates in the country and indicates severe rental accommodation shortages.
This extremely low vacancy rate creates substantial advantages for property investors. Minimal downtime between tenants means rental income streams remain consistent and predictable. Most quality properties experience virtually no vacancy periods when tenants transition.
The tight market also empowers landlords to maintain rental rates and secure regular increases. Tenants have limited alternative options, reducing the likelihood of rental negotiations or property abandonment for cheaper alternatives.
This market tightness provides exceptional stability for rental income calculations. Investors can confidently project annual rental returns without factoring in significant vacancy allowances that might be necessary in softer markets.
The ongoing housing shortage, combined with Adelaide's population growth and limited new rental supply, suggests this landlord-favorable environment will persist through 2025 and beyond, supporting continued yield performance and rental stability.
Are there any upcoming zoning, infrastructure, or rental market changes that could impact yields in Adelaide over the next year?
Several significant developments are positioned to enhance Adelaide's rental yield prospects over the coming year.
The Greater Adelaide Regional Plan is actively promoting higher-density housing in key centers like Elizabeth, with specific incentives for apartment developments and increased building heights. These zoning changes will likely increase rental supply in high-yield areas while potentially supporting property values through improved amenity.
Major infrastructure investments are underway in public transport, parklands, and community amenities, particularly in northern and regional centers. These improvements typically enhance rental attractiveness and can support both rental rates and property values in affected areas.
The state government's focus on housing affordability and rental supply may introduce new investor incentives or planning approvals that could benefit yield-focused investors. Fast-track approvals for certain development types could accelerate new supply in high-demand areas.
Continued tight supply conditions, combined with ongoing population growth and limited new rental stock, support expectations that yields will remain stable or potentially improve in select suburbs throughout 2025.
Infrastructure upgrades in transport corridors and employment hubs are expected to particularly benefit northern suburbs like Elizabeth and Salisbury, potentially enhancing their already strong yield performance through improved tenant demand and rental sustainability.
It's something we develop in our Australia property pack.
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 market offers compelling opportunities for yield-focused investors, with units delivering exceptional returns averaging 5.7% and northern suburbs providing even higher performance at 6%+.
The combination of low vacancy rates, affordable entry prices, and ongoing infrastructure development creates a favorable environment for sustained rental income and potential yield improvements through 2025.
Sources
- Fox Real Estate Adelaide Property Market Update May 2025
- NAB Adelaide Property Market Insights
- BambooRoutes Adelaide Real Estate Market
- OpenAgent Suburbs with Highest Rental Yield Australia
- Star Investment Best Suburbs to Invest in Adelaide 2025
- Domain Rental Cost Differences by Bedroom Count
- CoreLogic National Rental Market Analysis
- RealEstate.com.au Adelaide Best Rent Returns