Why Invest in Adelaide Property?
Consistent Long-Term Growth & Strong Fundamentals
Over the past 10 years, Adelaide’s median property price has grown around 7% per year. This means that prices effectively doubled in Adelaide.
Forecasts remain optimistic: expectations of 4–8% further growth, and even up to 14% with interest rate cuts.
Adelaide has been a very strong property performer - it even was awarded the the capital with the biggest growth in house values over the past 20 years being 175%.
Tight Rental Market & Solid Yields
Vacancy rates across Adelaide hover well below 1%, often cited around 0.7–0.8%, which is significantly tighter than a “balanced” market at 2–3%.
Rental yields are robust—typically 3.7%–5.3%, depending on property type and location.
Rising rents continue to fuel demand: house rents are up 5–8% year-on-year, while units are also seeing strong rental growth.
South Australia is growing steadily, with the population expected to reach 2 million by 2031.
Economic Diversification & Strong Infrastructure Investment
According to Infrastructure SA, the State Government’s ambitious infrastructure program is delivering record levels of investment with more than $25.6 billion allocated over the next four years from 2024-2025 to 2027-2028.
This includes $10.3 billion for transport, $4.72 billion for social infrastructure including $3.2 billion to health, and a further $6.91 billion to water and energy.
Current and Future Major Projects in South Australia
1. Transport & Road Infrastructure
This sector has the most substantial public investment, with a focus on improving freight efficiency, reducing congestion, and enhancing safety.
North-South Corridor (T2D): The final and most complex stage of Adelaide's non-stop north-south motorway. This project will deliver a 10.5 km motorway, including twin tunnels, connecting the River Torrens to Darlington. This is the largest infrastructure project in the state's history and is expected to save motorists up to 40 minutes of travel time.
Majors Road Interchange: A new $120 million interchange at Majors Road will provide on/off ramps to the Southern Expressway, significantly improving access for southern suburbs residents and supporting future growth.
Main South Road Duplication (Fleurieu Connections): A multi-stage project to duplicate Main South Road and Victor Harbor Road, improving safety and journey times to the popular Fleurieu Peninsula, supporting both local communities and tourism.
Augusta Highway Duplication: Upgrades to this key freight route connecting Adelaide to the state's northern industrial and agricultural regions, improving safety and freight efficiency.
Adelaide Aquatic Centre: A new, world-class aquatic, health, and wellness centre is being built to replace the existing facility, offering enhanced amenities and services.
2. Defence, Space & Technology
South Australia is positioned as a global hub for defence and space industries, with multi-decade projects securing significant economic activity and high-tech jobs.
AUKUS Nuclear-Powered Submarine Program: The most significant defence project in Australia's history, with South Australia at the forefront of the AUKUS program. The project will see the construction of a future fleet of nuclear-powered submarines at the Osborne Naval Shipyard.
Hunter Class Frigates: The delivery of a fleet of nine anti-submarine warfare frigates is currently underway at the Osborne Naval Shipyard.
Australian Space Agency: Adelaide is home to the national space agency, which is driving a pipeline of future projects and attracting a growing number of space-related companies to the state.
3. Health Infrastructure
Major investments in health are creating state-of-the-art facilities and expanding capacity to support a growing population.
New Women's and Children's Hospital: A new $3.2 billion hospital is being built adjacent to the Royal Adelaide Hospital. The project will deliver a modern, expanded facility with more beds, theatres, and a larger emergency department.
4. Urban Renewal & Residential Development
The government is facilitating the release of significant land parcels for residential and mixed-use development, helping to address housing supply and urban renewal.
Market Square: A $400 million redevelopment project that will expand the Adelaide Central Market and include a new commercial office tower, retail spaces, and residences, creating a vibrant new precinct.
Former West End Brewery Site, Thebarton: A major urban renewal project valued at over $1 billion. The 8.4-hectare site is being master-planned for a mixed-use, climate-resilient community with a minimum of 1,000 homes.
Adelaide CBD Skyscrapers: Several new commercial and residential towers are in various stages of planning and construction, including Festival Tower Two and the Keystone Tower, which will redefine the city's skyline.
Bowden Urban Renewal: The final stages of this award-winning urban renewal project are underway, with the last remaining parcels of land being released for development.
Quality of Life & Liveability
Adelaide consistently ranks among the world’s most liveable cities (measured on stability, Healthcare Culture & Environment Education Infrastructure often within the top 10 highlighting its exceptional lifestyle appeal.
Features such as leafy parklands, cultural precincts, manageable traffic (“twenty-minute city”), top-tier health and education facilities, and beautiful surroundings add enormous lifestyle value.
With these compelling fundamentals—strong growth, rental tightness, economic diversification, liveability, and forward-looking infrastructure—Adelaide is a polished and safe bet for property investors.
With these compelling fundamentals—strong growth, rental tightness, economic diversification, liveability, and forward-looking infrastructure—Adelaide is a polished and safe bet for property investors.