SA property market forecast for 2025
With housing affordability, population growth and economic shifts shaping the real estate sector, homeowners and investors are sure to be keen to understand what lies ahead.
Whether you’re buying, selling or simply keeping an eye on the market, this forecast offers valuable insights into the future of property in South Australia and explores how economic factors might influence prices in the coming year.
Steady growth amidst changing conditions
The South Australian property market has enjoyed steady growth in recent years, particularly in Adelaide, which continues to be recognised as one of the most affordable and liveable cities in the world. Regional areas, too, have seen strong interest as homeowners and investors look beyond metropolitan boundaries for affordability and lifestyle opportunities. Regional towns and cities have ridden on the coat tails of the rising Adelaide market.
As we step into 2025, property prices are predicted to continue on a moderate upward trajectory, though at a slower pace compared to the rapid increases seen in previous years. Factors such as population growth, low housing supply and continued demand for affordable housing are expected to underpin price stability and gradual growth, particularly in key suburban and regional hotspots.
The market’s performance will be influenced by South Australia’s strong economic fundamentals, including infrastructure projects, a thriving defence industry and growth in sectors like renewable energy and technology. With the state continuing to attract investment, employment opportunities and interstate migration, demand for housing is likely to remain solid.
How economic factors impact property prices
It’s important to understand the economic factors that can shape property trends – with interest rates, inflation, employment and government policies all playing a role in determining property prices, affordability and buyer sentiment.
- Interest rates and affordability
Interest rates remain one of the biggest factors influencing property prices. In recent years, rising interest rates have impacted mortgage repayments, causing some homeowners and buyers to tread carefully. Heading into 2025, economists predict that interest rates are likely to stabilise, which could restore confidence for buyers and stimulate market activity. Lower or stable rates mean more affordable borrowing, encouraging first-home buyers and investors to re-enter the market.
- Inflation and costs of living
Inflation impacts households in multiple ways—from higher living expenses to increased construction costs. In 2024, inflation placed pressure on household budgets, but there’s optimism that 2025 will bring a gradual easing. This could alleviate cost-of-living pressures, encouraging consumer confidence and increasing demand for property, especially in more affordable markets like South Australia.
- Employment and economic growth
A strong economy typically leads to a strong property market. With South Australia positioned as a hub for innovation, renewable energy and major defence projects, employment opportunities continue to attract skilled workers and boost migration. Job growth creates demand for housing, particularly in areas close to employment hubs, schools and transport infrastructure.
- Government incentives
Government policies and incentives can also shape the property landscape. Programs like first-home buyer grants, stamp duty concessions and investment in infrastructure projects help drive demand and improve accessibility for buyers. In 2025, we can expect to see ongoing support for affordable housing and regional growth, ensuring South Australia remains an attractive place to live and invest.
- Predictions for key areas
While Adelaide remains a focal point for property growth, regional areas are likely to continue attracting buyers in 2025. Locations such as Mount Barker, Gawler and Murray Bridge are seeing significant population growth thanks to their affordability and expanding infrastructure. Suburbs on Adelaide’s fringe also remain appealing for buyers looking for a balance between city convenience and suburban lifestyle, especially with the trend towards working from home.
For investors, areas with strong rental demand and potential for capital growth will remain a priority. Adelaide’s northern and western suburbs, where infrastructure and development are expanding, are expected to be hotspots for those seeking long-term returns.
What does this mean for homeowners and buyers?
For homeowners, the forecast for steady price growth provides an opportunity to capitalise on equity and plan for the future. Whether you’re considering selling, renovating or investing, understanding the market trends will help you make informed decisions.
For first-home buyers, stabilising interest rates and government incentives make 2025 an attractive time to enter the market. South Australia’s affordability compared to other states remains a major drawcard, offering opportunities to secure a home without overextending financially.
Investors should keep an eye on regions with strong rental yields, infrastructure investment and job growth—factors that typically drive demand and price appreciation over time.
For those looking to navigate the market with confidence in the year ahead, the Association of Building Consultants can help. Our trusted network of members can provide expert inspection advice if you are thinking of buying a property.
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