Adelaide’s rapid price growth attracts property investors – realestate.com.au

Almost all investment properties that changed hands in Adelaide in the past year sold for more than they were bought for, a new report has found.

The PropTrack Terri Scheer Investor Report found that 99 percent of investment properties sold in the metro area were profitable.

Rapid price growth in recent years was considered the driving factor.

The report says investors are on the rise, with lending in South Africa increasing by 16 percent between 2024 and 2025.

Investors now make up 39 percent of all homeowners in the state – close to the highest share of lending ever.

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Falling mortgage rates, high rental yields and quick rentals – typically less than three weeks – are among the main factors attributed to the increase in the number of investors.

Evanston Gardens, Elizabeth North and Evanston were the top housing investment areas, with price growth in the suburbs about twice that of Adelaide and returns above the capital’s median of 3.9 per cent.

Brooklyn Park, Camden Park and Morphett Vale scored the highest for units.

Turner Real Estate director Lachlan Turner said low supply and rising buyer demand created the perfect conditions for stronger price growth.

“Inventory levels continue to tighten and are 15 percent lower than this time last year, with lower quartile homes (between $600,000 and $700,000) leading price growth, up 3.3 percent for the quarter compared to 1.7 percent at the high end ($1.2 million-plus),” he said.

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Turner Real Estate director Lachlan Turner.

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“Meanwhile, the rental market remains highly competitive, with weekly asking rents averaging $610 for houses and $550 for units, delivering healthy gross yields of 3.4 percent and 4.5 percent respectively.”

Nationally, investor activity has increased in most of the country over the past year, the report said.

Angus Moore, senior economist at REA Group, said investors are now accounting for a substantial share of new lending.

“Rental market conditions remain very tight and rental prices have risen rapidly in recent years, which is likely to encourage investors to buy in,” he said.

“With markets expecting at least one further rate cut from the Reserve Bank and challenging conditions in the rental market continuing, strong investor activity is likely to continue for the rest of this year and into next.”

Terri Scheer executive manager Carolyn Parrella said that with more than 90 percent of investment properties nationwide selling for more than their purchase price, current market conditions could present a lucrative opportunity for investors.

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Angus Moore, senior economist at REA Group.

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Top 10 Suburbs for Investors – Homes

(Rank, suburb, median sales price, annual median percentage growth, rental yield)

1. Evanston Gardens – $640,000, 23.4 percent, 4.6 percent

2. Elizabeth North – $505,000, 19 percent, 4.8 percent

3. Evanston – $614,000, 21.5 percent, 4.6 percent

4. St Clair – $720,000, 18 percent, 4.5 percent

5. Elizabeth Downs – $560,000, 21.7 percent, 4.6 percent

6. Evanston Park – $715,000, 21.2 percent, 4.4 percent

7. Greenwith – $880,000, 22.2 percent, 4.3 percent

8. Smithfield Plains – $568,000, 20.8 percent, 4.6 percent

9. Davoren Park – $553,000, 19.5 percent, 4.6 percent

10. Salisbury North – $610,000, 17.3 percent, 4.8 percent

Top 10 Suburbs for Investors – Units

(Rank, suburb, median sales price, annual median percentage growth, rental yield)

1. Brooklyn Park – $455,000, 27.10 percent, 5 percent

2. Camden Park – $618,000, 39.8 percent, 4.5 percent

3. Morphett Vale – $578,000, 22.70 percent, 4.5 percent

4. Glenside – $689,000, 26.7 percent, 4.7 percent

5. Salisbury – $441,000, 22.2 percent, 5.1 percent

6. Campbelltown – $650,000, 27.1 percent, 4.7 percent

7. Klemzig – $497,000, 17.2 percent, 5 percent

8. Glenelg East – $690,000, 21.1 percent, 4.2 percent

9. New Port – $472,000, 16.9 percent, 4.9 percent

10. Plympton – $499,000, 19.2 percent, 4.3 percent

Source: The PropTrack Terri Scheer Investor Report