South Australia’s property market demonstrated resilience across most sectors during the second half of 2025, supported by tight supply and steady demand.
Industrial remains a standout, with sub-2% vacancy driving rental growth, although development is constrained by rising costs. The Adelaide CBD office market strengthened in 2025, with vacancy tightening to 15.5% and moderate rental growth. However, investment activity is still subdued and price sensitive.
Retail performance is buoyed by strong leasing spreads and investor demand, despite consumer cost pressures. The hotel sector is stabilising, benefiting from improved occupancy and room rates, with Adelaide showing modest growth. Healthcare assets continue to attract strong private investor interest, underpinned by demographic trends, though rising interest rates may dampen activity. Residential development is supported by limited supply and strong price growth, but affordability constraints and higher rates are expected to moderate demand.
There is a degree of market uncertainty across all markets in early 2026 driven by geopolitical tensions in the Middle East, and ongoing trade policy adjustments. This environment has contributed to heightened volatility across equity markets and, notably, US Treasury yields. Oil prices have risen with impacts to cost of living. Continuing geopolitical instability may place upward pressure on inflation. Early evidence of tariff related inflationary pressure has been reported in the US and is expected to continue during 2026 as businesses pass on higher input and substitution costs. Australia’s economy continues to be influenced by broader economic conditions, contributing to a cautious domestic market.
Overall, the market outlook remains cautiously positive, with supply constraints underpinning long-term fundamentals.
Our experts across valuation sectors share their analysis and insights in our latest South Australia Market Snapshot covering the second half of 2025, as well as what to look out for in 2026, across Healthcare, Hotels and Accommodation, Office, Industrial, Residential Development, and Retail.
Click the link below to read the full Snapshot.
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