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Adelaide's rental yields currently range from 3.7% to 4.2% for houses and around 5.7% for units, making it one of Australia's most attractive markets for property investors as of mid-2025. The city's northern suburbs like Elizabeth and Salisbury are delivering the highest yields, with some units achieving over 6.5% gross returns, while the market benefits from exceptionally low vacancy rates of just 0.7%.
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Adelaide offers superior rental yields compared to Sydney and Melbourne, with units consistently outperforming houses across all suburbs.
Northern suburbs provide the highest returns, while the extremely tight rental market ensures stable income for investors.
| Property Type | Average Yield | Top Performing Suburbs | Vacancy Rate |
|---|---|---|---|
| Houses | 3.7% - 4.2% | Elizabeth North (5.6%) | 0.7% |
| Units | 5.7% | Elizabeth Vale (6.6%) | 0.7% |
| CBD Units | 6.1% | Adelaide CBD | 0.7% |
| Affordable Areas | 6.0%+ | Salisbury, Elizabeth | 0.7% |
| Premium Areas | 5.0% - 5.5% | Glenelg, Norwood | 0.7% |
What are the current average gross rental yields in Adelaide for houses and units?
Adelaide's rental yield market shows a clear distinction between property types as of June 2025.
Houses in Adelaide currently deliver gross rental yields between 3.7% and 4.2%, which represents a slight decline from the previous year's 3.9% average. This decrease reflects strong capital growth that has outpaced rental increases in the housing market.
Units significantly outperform houses with an average gross rental yield of approximately 5.7%. Unit yields have remained stable or even increased slightly, supported by an 8.5% rise in unit rents over the past 12 months. This makes units particularly attractive for investors seeking higher returns in Adelaide.
The yield difference between houses and units is substantial, with units delivering roughly 1.5 percentage points higher returns than houses across the Adelaide market.
These yields position Adelaide as one of Australia's most attractive rental markets for property investors.
How do rental yields vary across Adelaide suburbs like the CBD, Glenelg, Norwood, and Elizabeth?
| 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 |
| Elizabeth Vale | Unit | 6.6% | $300,000 | $350 |
| Elizabeth North | House | 5.6% | $485,000 | $450 |
| Glenelg | Unit | ~5.5% | $600,000 | $635 |
| Norwood | Unit | ~5.2% | $620,000 | $620 |
What's the average weekly rent for a 2-bedroom unit versus a 3-bedroom house in high-yield areas?
High-yield Adelaide suburbs show distinct rental patterns between unit and house configurations.
2-bedroom units in high-yield suburbs typically rent for around $450 per week, though this varies significantly by location. In Elizabeth Vale, one of the highest-yielding areas, 2-bedroom units command approximately $350 per week, reflecting the more affordable nature of this suburb.
3-bedroom houses in high-yield areas average around $550 per week in rent. Elizabeth North, a top-performing suburb for house yields, sees 3-bedroom houses renting for approximately $450 per week, demonstrating strong demand despite lower absolute rental figures.
The rental gap between units and houses is typically $100-150 per week, but this difference becomes more pronounced when considering the significantly lower purchase prices of units in high-yield areas.
These rental figures translate to strong yields because property purchase prices in high-yield suburbs remain relatively affordable compared to premium Adelaide locations.
How have Adelaide's rental yields changed over the past 12 months?
Adelaide's rental yield trends over the past year reveal divergent paths for different property types.
House yields have experienced a slight decline, dropping from approximately 3.9% to the current range of 3.7-3.8%. This decrease reflects robust capital growth that has outpaced rental increases in the housing market, with property values rising faster than rents.
Unit yields have demonstrated greater resilience, remaining stable or showing slight increases. This stability is supported by an 8.5% increase in unit rents over the 12-month period, which has largely kept pace with any capital growth in the unit market.
The overall Adelaide rental market remains tight, contributing to yield stability despite the marginal decline in house yields. Strong tenant demand continues to support rental prices across most suburbs.
This trend indicates that while capital growth has been strong, rental growth has been more modest for houses, while units have maintained their income-generating appeal for investors.
What are the top 5 suburbs in Adelaide with the highest rental yields right now?
| 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 Australian cities?
Adelaide stands out as one of Australia's most attractive rental yield markets when compared to other capital cities.
For houses, Adelaide's 3.7-4.2% yields significantly outperform Sydney's 3.0% and match Melbourne's 3.7%. Brisbane offers comparable house yields at 3.6%, while Perth leads slightly at 4.2%, making Adelaide competitive among the major capitals.
Units in Adelaide deliver exceptional performance at 5.7% yields, substantially exceeding Sydney and Melbourne's approximately 4.0% unit yields. Adelaide also outperforms Brisbane's 4.5% unit yields and Perth's 5.0%, establishing itself as the premium unit investment market among Australian capitals.
Adelaide's superior unit yields reflect a combination of affordable entry prices and strong rental demand, particularly in northern suburbs and the CBD area.
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This comparative advantage makes Adelaide particularly attractive for investors seeking higher income returns compared to the traditionally investment-focused markets of Sydney and Melbourne.
What are the biggest factors causing rental yield variations between different parts of Adelaide?
Several key factors drive significant rental yield variations across Adelaide's diverse suburban landscape.
Location remains the primary driver, with northern and outer suburbs like Elizabeth and Salisbury delivering higher yields due to lower property purchase prices combined with strong tenant demand. These areas attract working families and students seeking affordable housing options.
Property type creates substantial yield differences, with units consistently outperforming houses across all Adelaide suburbs. Units benefit from lower purchase prices and higher rental returns per dollar invested, particularly in high-density areas.
Development and infrastructure proximity significantly impacts yields, with areas near transport links, universities, and employment hubs commanding higher rents. The CBD and suburbs with planned infrastructure improvements tend to attract premium rental rates.
Supply and demand dynamics in specific areas create yield variations, with tight vacancy rates of 0.7% supporting higher rents and yields, especially in affordable suburbs where demand consistently exceeds supply.
What's the median property price in the suburbs with the best yields, and what does that translate to in annual rental income?
| Suburb | Median Price | Weekly Rent | Annual Rental Income | Gross Yield |
|---|---|---|---|---|
| Elizabeth Vale | $300,000 | $350 | $18,200 | 6.6% |
| Salisbury | $361,000 | $400 | $20,800 | 6.3% |
| Elizabeth North | $485,000 | $450 | $23,400 | 5.6% |
| Adelaide CBD | $500,000 | $580 | $30,160 | 6.1% |
| Elizabeth Downs | $502,500 | $455 | $23,660 | 5.6% |
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What are the typical annual expenses for a rental property in Adelaide, and how do they affect net yield?
Understanding annual expenses is crucial for calculating realistic net rental yields in Adelaide's property market.
Property management fees typically range from 7-11% of annual rental income, representing one of the largest ongoing costs for investors. For a property generating $20,000 annual rent, management fees would cost between $1,400-$2,200 per year.
Council rates average $1,872-$2,000 annually across Adelaide properties, representing a fixed cost regardless of property value. Insurance costs approximately $121 per month or $1,452 annually for typical rental properties.
Maintenance expenses typically consume 1-4% of the property's value annually, varying significantly based on property age and condition. For a $400,000 property, annual maintenance could range from $4,000-$16,000.
Strata fees for units add 0.3-1.2% of property value annually, potentially costing $1,200-$4,800 for a $400,000 unit. These expenses typically reduce gross yields by 1-2 percentage points, making net yields substantially lower than gross figures.
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 presents distinct yield considerations for investors.
New developments often attract higher rental rates due to modern features, energy efficiency, and tenant appeal for contemporary living spaces. These properties typically require minimal maintenance in the first few years and may qualify for depreciation benefits.
However, new developments usually command higher purchase prices, which can offset rental premiums and result in lower overall yields. Strata fees in new complexes are often higher, further impacting net returns.
Older properties in high-yield suburbs like Elizabeth North and Salisbury offer lower entry prices and potentially higher gross yields. These properties may require more maintenance but can provide stronger cash flow returns per dollar invested.
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The trend shows that high-yield suburbs are experiencing new development activity that enhances rental appeal while maintaining competitive yields, offering investors options in both categories.
What is the vacancy rate across Adelaide, and how does it impact rental income and stability?
Adelaide's exceptionally low vacancy rate of 0.7% as of mid-2025 represents one of the tightest rental markets among Australian capital cities.
This extremely low vacancy rate creates a highly favorable environment for rental property investors, with minimal risk of extended vacancy periods. Properties typically experience very short turnaround times between tenants, often just days rather than weeks.
The tight market enables landlords to maintain stable rental income with minimal downtime costs. Investors can expect near-continuous rental income throughout the year, with vacancy periods rarely exceeding a few weeks even during tenant transitions.
Strong tenant demand supports rental price stability and growth, with landlords able to achieve market rents quickly when properties become available. This market dynamic also provides leverage for rent increases at lease renewal periods.
The low vacancy rate reflects sustained population growth, limited rental stock supply, and strong economic conditions in Adelaide, creating an ideal environment for consistent rental returns.
Are there any upcoming zoning, infrastructure, or rental market changes that could impact yields in Adelaide over the next year?
Several significant changes are planned for Adelaide that could positively impact rental yields through 2025 and beyond.
The Greater Adelaide Regional Plan includes zoning changes to support higher-density housing in key centers like Elizabeth, with specific incentives for apartment developments and increased building heights. These changes will likely increase rental supply while maintaining strong demand in high-yield areas.
Major infrastructure investments are underway in public transport, parklands, and community amenities, particularly in northern and outer suburbs. These improvements are expected to enhance rental appeal and support yield growth in currently high-performing areas.
The continued tight supply situation, combined with new development opportunities, suggests yields will remain stable or improve, especially in northern suburbs benefiting from infrastructure upgrades.
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These planned changes position Adelaide's rental market for continued strength, with infrastructure development likely to support both rental demand and property values in key investment areas.
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.
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 yield market offers compelling opportunities for property investors, with units delivering exceptional returns above 5.7% and northern suburbs providing yields exceeding 6.5%.
The combination of affordable entry prices, extremely low vacancy rates, and planned infrastructure development creates a strong foundation for sustained rental income growth in Australia's most yield-attractive capital city market.
Sources
- Fox Real Estate Adelaide Property Market Update
- NAB Adelaide Property Market Insights
- BambooRoutes Adelaide Real Estate Market
- OpenAgent Highest Rental Yield Suburbs
- Star Investment Best Adelaide Suburbs 2025
- Domain Rental Cost Analysis
- CoreLogic National Rental Market Report
- Real Estate Adelaide Best Rent Returns