Property Investment South Australia Update 2021

Here we explore the property market and key areas to understand the investment benefits that are available in getting you prepared to start investing in South Australia.


Property Market Adelaide & SA - July 2021 Snapshot

SA is seeing a massive increase in buyers from interstate, as REISA1 compared the numbers for January through April, with those from the same first four months of 2020, and found the number of interstate buyers picking up properties here in SA increased by a whopping 313%.

A good number of these buyers are investors, attracted by the excellent returns that are available in the local property market. However, REISA believes the majority of purchases are a result of net positive migration, with professionals and returning South Australians attracted by the value and lifestyle of South Australia.

SA Housing Market

South Australia’s housing market has proven to be a reliable location for property investment as prices across the state for both houses and units appear to be relatively stable with the potential for long term growth. 

As the below graph indicates, SA’s property market, especially Adelaide, has historically shown a steady growth rate, with few major declines in the market. 

While 2020 caused a shake up of most property markets across the country, South Australia performed particularly well with all of their markets showing an increase. In December 2020 houses in Adelaide and Regional SA, as well as units in Regional SA all recorded all time high median house prices.2 These increases in 2020 were led by units in Regional SA as they recorded a 16.47% growth in December 2020, compared to 2019 figures.3

Source: Median price (unstratified) and number of transfers (capital city and rest of state)

So far in 2021 SA’s property market has continued to record new high’s in median house prices with the overall Adelaide property market seeing a 5.4% increase in the second quarter of 2021, while regional SA achieved a 2.7% increase in the same period.4 

South Australia’s housing market continues to see new highs with no signs of slowing down, making now a great time to invest in property in this state. 

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SA Economy and Infrastructure

Representing 5.6% of Australia’s GDP, South Australia has an estimated Gross State Product (GSP) of $110.630 billion.5 Although not major growth, the SA economy has consistently shown a steady increase in its population and GSP over the past 5 years.6

While 2020 saw most States see a decline in their economic output, South Australia was able to stay ahead of COVID-19 and avoid any major economic downsides. The State’s handling of the pandemic has increased confidence within families and business and has carried into the forecasted economic performance for 2021, as South Australia’s economy is expected to increase by 3.4%.7

Announced in the 2021-22 Federal Budget to help further drive the State’s economy and support more than 5,000 is a record investment of $3.4 billion in new major infrastructure projects. These infrastructure projects will create jobs across the state and enhance community infrastructure and overall road safety. 

These key infrastructure projects include:8

  • $2.6 billion for the North-South Corridor – Darlington to Anzac Highway
  • $161.6 million for the Truro Bypass
  • $148 million for the Augusta Highway Duplication Stage 2
  • $48 million for the Heysen Tunnel Refit and Upgrade Stage 2
  • $32 million for the Kangaroo Island Road Safety and Bushfire Resilience Package
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Property investor guide

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Best Areas in SA to Invest:

As the State’s capital, Adelaide is a growing city that offers great opportunities to any potential investor. As discussed above, Adelaide’s property market has historically been consistent in terms of growth and the housing marketing is currently recording record high prices. Along with a strong property market, Adelaide is currently experiencing a strong rental market with rental yields for houses and units at 4.2% and 5.3%, respectively.9 

This strong start to Adelaide’s property market in 2021 with forecasts for further growth, make it an appealing location to begin your property investment journey. 

Read our guide for more information on investing in Adelaide here.

The Eyre Peninsula is a triangular peninsula located in the far west of South Australia. It is bound at its corners by large population centres of Whyalla, Port Lincoln and Ceduna. 

The Eyre Peninsula has benefitted from the increase in working from home culture that emerged in 2020 as its rental market has become stronger hitting all time highs in it’s average rental yield in June 2021 for both houses (5.5%) and units (6.0%).10

Mount Gambier is the halfway point between Adelaide and Melbourne. Despite being located in regional SA and not able to commute to a major city, Mount Gambier is the major service centre for the Limestone Coast region, and provides many city amenities. 

At an affordable median house price of $277,000 and unit prices of $201,000, Mount Gambier’s property market is a great location for an investment property in SA that’s well under the state’s median.11 Despite these low prices, Mount Gambier’s housing market has increased 5.22% in the past 12 months from March 2021, and it’s rental yield for both houses and units are strong at 5.4% and 5.7%, respectively.12

SA Investment Property Taxes

When buying an investment property in South Australia there are some tax considerations that you will need to consider. The good news is that if you are purchasing an investment property in South Australia you will not have to pay any stamp duty as this was abolished on 1 July 2009. 

When owning an investment property in South Australia, you may need to pay land tax on the property. Land tax is payable if the total value of all your taxable land is above the land tax threshold. The threshold is updated every year and applies to land holdings you own at midnight 30 June each year. You can find the full list of land tax thresholds on the State Revenue’s website here to understand what land tax may be applicable to you.

We are here to help

If you’re looking to purchase an investment property and you think SA is the right market for you, speak to your local Mortgage Choice broker to understand what you can afford and what location may be right for you.