The Rise of Investor Activity in the South Australian Property Market

Investor activity in the South Australian property market has seen a significant uptick in recent months. National September 2024 data from the ABS reveals a 34.2% year-on-year increase in investor loans, and South Australia is seeing its fair share of these loans. Several factors contribute to this shift, making South Australia a more attractive destination for property investment. 

One key driver is the affordability of property in South Australia, especially in comparison to Sydney and Melbourne. Adelaide offers more affordable property options, making it appealing to both first-home buyers and investors. With rising property prices in larger cities, many investors are now turning to Adelaide for better returns without the high entry costs found in Sydney and Melbourne. This affordability also typically results in higher rental yields, making the city an appealing choice for those seeking passive income. 

In addition to affordability, South Australia is experiencing significant population growth, which is driving demand for housing. As more people migrate to the state, both from interstate and overseas, the need for homes increases, which supports strong rental yields and capital growth. CoreLogic data from January 2025 revealed a strong 12-month rental growth rate of 6.7% for Adelaide, the second highest in the country and well above the national 12-month growth rate of 4.8%.

The state’s economic diversification has also played a crucial role in attracting investors. While South Australia was traditionally known for its reliance on manufacturing and mining, it has diversified into sectors such as technology, health, and education. This shift has brought in skilled workers and new job opportunities, further fuelling the demand for housing. 

Moreover, major infrastructure projects, such as the $3.6 billion regional rail upgrade and tram service expansions, have enhanced connectivity and raised the appeal of suburban areas. These improvements make it easier for residents to access essential services and employment hubs, further boosting investor confidence in the region. 

With these combined factors—affordability, population growth, economic diversification, and infrastructure development—South Australia has become a prime market for property investors seeking growth and strong rental yields. 

Fletcher's Slip, located in Adelaide's thriving western suburbs, offers a range of townhouses providing excellent investment opportunities for those seeking to expand their property portfolios. Fletcher’s Slip provides investors with access to high-quality, well-located properties in a growth area, focussing on contemporary designs and sustainable living, For more information visit www.fletchersslip.com.au   

If it is an apartment that you are after the Glenside development offers a unique set of investment products, focusing on 1,2 and 3 bedroom properties.  Glenside, located in Adelaide’s East, provides easy access to the city, excellent schools and plenty of local amenities.  For more information visit www.glenside.com.au