Market Overview

Adelaide continues to outperform most of its capital city peers as we move into June. While national headline figures have softened – driven largely by weakness in Sydney and Melbourne – Adelaide’s fundamentals remain intact: tight supply, ongoing population growth, and relative affordability continue to anchor the market.

The most recent PropTrack data for May 2026 puts Adelaide’s median dwelling value at approximately $944,000, with houses sitting just over the $1,006,000 mark and units at around $692,000. Annual growth remains among the strongest of any Australian capital, tracking at 12% to 14% year-on-year.

That said, the pace has moderated. The frenzy of mid-2025, when properties attracted multiple offers within days of hitting the market, has given way to a more measured rhythm. Buyers are taking longer to commit, finance conditions are being scrutinised more carefully, and some campaigns are running a little longer than sellers might expect.

This is not a sign of weakness – it is a sign of normalisation. Adelaide’s market is transitioning from exceptional growth to steady, sustainable performance. That is actually a healthier environment for well-prepared buyers and realistic sellers alike.

Auction Market & Buyer Demand

Adelaide continues to record the strongest auction clearance rates of any Australian capital city. For the week ending 24 May 2026, the clearance rate held at approximately 67%, comfortably ahead of the national combined capital average – firmly in the range where vendors retain the upper hand.

By comparison, Sydney and Melbourne have seen clearance rates slide into the low-to-mid 50s percentage range through May, reflecting the more pronounced impact of rate rises on borrowing capacity in those higher-price markets. Brisbane has been volatile. Adelaide has been steady.

The national picture tells a similar story: the combined capital clearance rate averaged around 52% in the week of 23 May 2026, well below the 63.5% recorded over the same week last year. Adelaide’s relative outperformance is not accidental – it reflects tighter stock levels, a more diverse buyer pool, and a price point that, while no longer cheap, still offers value relative to the east coast.

What this means in practice:

• Well-presented properties in established suburbs are still generating competition at auction
• Buyers who are pre-approved and ready to move quickly continue to have an advantage
• Vendors pricing at or below market expectations are achieving strong results; overpriced campaigns are sitting longer
• Private treaty is growing in popularity as some sellers seek more controlled negotiation environments

Price Performance: Houses & Units

Adelaide house prices rose approximately 0.9% in May 2026, with the median sitting around $1,006,000. Annual growth of approximately 12% to 13% reflects a market that has been steadily building throughout early 2026, even as momentum eases from the exceptional highs of 2024 and 2025.

Units have continued to perform strongly, with the median sitting at approximately $692,000 and annual growth tracking at around 13% – making the unit segment one of the stronger performers across both capital city and time horizon comparisons. This is driven largely by buyer demand from those priced out of the detached housing market and investors attracted by yields that still significantly outperform Sydney and Melbourne.

Across the broader Greater Adelaide market, the combined median dwelling value now sits close to $944,000. The city’s five-year performance – with values up approximately 77% – remains one of the strongest of any Australian capital, surpassed only by Perth and Brisbane over that period.

Suburb-level conditions to watch:

• Inner and middle-ring suburbs continue to attract strong owner-occupier competition, particularly family homes under $1.1m
• Entry-level and first home buyer price brackets (sub-$650,000) remain highly contested, with limited supply
• The unit corridor along the inner north and inner south continues to attract investor interest, underpinned by tight vacancy and rental growth
• Outer suburban areas are showing slightly longer selling times as affordability constraints stretch buyer reach

Interest Rates & Borrowing Conditions

The Reserve Bank of Australia raised the official cash rate by 0.25% at its May 2026 meeting, lifting it to 4.35%. This was the third consecutive increase in 2026 and effectively reversed all three of the rate cuts delivered in 2025, returning the cash rate to the level last seen before those reductions began.

The RBA cited persistent inflation above its 2-3% target range, strong household spending and rising energy costs as the drivers of its decision. The next board meeting is scheduled for 16 June 2026. Most economists – including analysts at CBA – expect a pause at the June meeting to allow previous rises to work through the economy. However, Westpac and a number of other forecasters have not ruled out further hikes in August if inflation data remains elevated.

For buyers, this environment means borrowing capacity has contracted compared to where it stood twelve months ago. A $600,000 mortgage holder with 25 years remaining faces roughly $91 more per month in repayments following the May increase alone. Combined with the cumulative impact of three hikes, the effect on household budgets is material.

Practical implications for property decisions:

• Get pre-approval sorted before searching – your borrowing limit today may differ from what you expected
• Factor in rate buffer scenarios: test your repayments at an additional 0.5% to 1% above current levels
• Finance clause wording in contracts deserves careful attention – approval timelines and expiry dates matter
• Sellers should understand that buyer pools are smaller than twelve months ago; pricing realistically is more important than ever

Rental Market & Investment Outlook

Adelaide’s rental market remains one of the tightest in the country. Vacancy rates are sitting at approximately 0.7% to 0.8% – near record lows – with little sign of meaningful relief in the near term. Annual rental growth of around 3.5% to 3.7% for houses is tracking in line with inflation forecasts, reflecting a moderation from the exceptional growth of previous years, but still firmly positive.

Gross rental yields for Adelaide dwellings sit at approximately 3.5%, with units offering a marginally higher return. While this is below historical averages in yield terms – a consequence of the strong capital growth of the past five years – it compares favourably to Sydney and Melbourne, where yields have been compressed further by higher purchase prices and more modest rent growth.

For investors, the case for Adelaide continues to rest on a combination of factors: near-zero vacancy, consistent rental income, ongoing capital growth (albeit at a more measured pace), and a price point that allows for more manageable entry into the market than the major east coast capitals.

The caveat for 2026 is the impact of higher interest rates on holding costs. Investors who purchased with significant leverage over the past two years should model their cash flow carefully at the current 4.35% cash rate – and stress-test against a possible further increase. Those who have held for three or more years will generally be in a stronger position given the capital growth accrued.

Key rental stats at a glance:

• Vacancy rate: approximately 0.7% (near record lows)
• Annual house rent growth: approximately 3.6%
• Gross rental yield (dwellings): approximately 3.5%
• Units continue to offer yields that outperform Sydney and Melbourne equivalents

Supply & New Listings

Housing supply across Greater Adelaide remains constrained. New listing volumes have not returned to historical norms, and winter typically brings a further seasonal reduction in stock coming to market. Construction delays – driven by elevated building costs and labour shortages – continue to limit the pipeline of new dwellings.

This supply deficit provides a structural floor under Adelaide values. Even as buyer demand moderates with higher rates, the lack of available stock prevents the kind of oversupply that can accelerate price corrections. This dynamic is expected to persist throughout 2026.

For buyers, the implication is that well-located properties in sought-after suburbs are unlikely to sit on the market for extended periods, even in a slower environment. Being prepared – with finance in place and a clear brief – remains essential.

Guidance for Buyers, Sellers & Investors

For Buyers

This is a more navigable market than twelve months ago. Competition still exists, but the urgency that defined 2024 and early 2025 has eased. Use this window to be thorough: secure pre-approval, understand the contract conditions you are signing, and don’t rush a decision purely out of fear of missing out. Quality properties are still selling – but so is patience.

For Sellers

Adelaide remains a seller-friendly market by national standards, but the days of under-quoting and watching multiple unconditional offers roll in are less common. Presentation matters. Pricing correctly from day one matters. Work closely with your agent to set a realistic campaign strategy that reflects current comparable sales – not the peak of mid-2025.

For Investors

Adelaide continues to stack up on fundamentals: tight vacancy, positive rental growth, relative affordability and long-term capital growth credentials. The unit segment in particular offers the best combination of accessible purchase price, yield, and capital growth potential right now.

That said, the May 2026 Federal Budget introduced changes that every property investor needs to understand before making a purchasing decision.

From 1 July 2027, negative gearing on established residential properties will be abolished for any property purchased after 7:30pm on 12 May 2026. This means investors who buy an established property from 13 May 2026 onwards will no longer be able to offset rental losses against their salary or other personal income. Losses can only be carried forward and offset against residential rental income or future capital gains from property. Existing investors and those who were already under contract before Budget night are fully grandfathered and unaffected.

New builds remain entirely exempt. Investors purchasing eligible new build properties will retain access to both negative gearing and the existing 50% capital gains tax discount.

The CGT discount itself is also changing: from 1 July 2027, the flat 50% discount will be replaced by an inflation-based discount, with a minimum 30% tax applied to capital gains. This applies only to gains arising after that date.

What does this mean practically for Adelaide investors? Properties that are new builds – house and land packages, off-the-plan apartments, or newly completed dwellings – now carry a meaningful tax advantage over established stock for buyers entering after Budget night. It is worth modelling the difference carefully, particularly if you are considering established investment stock in the sub-$700,000 range. The combination of higher interest rates and quarantined negative gearing losses will materially change after-tax cash flow for new investors in established property.

We strongly recommend speaking with your accountant or financial advisor before committing to a purchase. Ensure your numbers work at current interest rate levels, account for the new negative gearing rules if applicable, and retain capacity to absorb a potential further rate increase if the August RBA meeting delivers another rise.

Looking Ahead

Adelaide enters the second half of 2026 in a position of measured confidence. Values are near record highs, demand is steady, and the city’s structural advantages – affordability relative to Sydney and Melbourne, population growth, lifestyle appeal – remain firmly in place.

The key variable from here is the interest rate trajectory. A pause at the June RBA meeting would provide some breathing room for buyers and allow sentiment to stabilise. A further hike in August would add pressure, particularly at the top end of the market where borrowing costs bite hardest.

Our view is that Adelaide’s market will continue to outperform the national average through the remainder of 2026. Growth will be slower than 2025 – but steady, supported by supply constraints and genuine underlying demand. For buyers who are ready, and sellers who are realistic, the conditions are workable.

Ready to make your next move?

Whether you’re buying, selling, or investing, the Refined team is here to help you navigate Adelaide’s market with confidence. Get in touch with us today at refined.com.au or call us for a no-obligation chat about your property plans.

This update is based on data from CoreLogic (Cotality) Home Value Index, PropTrack Home Price Index, SQM Research, RBA monetary policy statements, and realestate.com.au as at May/June 2026. All figures are approximate and subject to revision as additional data becomes available. This update is general in nature and does not constitute financial or property investment advice

For years, Adelaide was often described as Australia’s “quiet achiever” — a beautiful city many locals loved, but one that was sometimes overlooked compared to Sydney or Melbourne.

Now, things are changing.

Across South Australia, more people are rediscovering just how good life in Adelaide really is. From our stunning coastline and relaxed lifestyle to growing job opportunities and vibrant food scene, Adelaide is enjoying a renewed sense of pride — and locals are embracing it.

A Lifestyle That’s Hard to Beat

One of Adelaide’s biggest strengths has always been balance.

Where else can you finish work and be at the beach within 20 minutes? Whether it’s a walk along Glenelg, dinner by the marina at West Lakes, or a weekend trip to the Barossa or McLaren Vale, South Australians have access to an incredible lifestyle without the stress and congestion seen in larger cities.

Many locals who once considered moving interstate are now choosing to stay, while former South Australians are returning home after realising what they miss most — space, community, and quality of life.

Adelaide’s Food and Wine Scene Continues to Shine

South Australia’s food culture has exploded over recent years.

From small suburban cafés to award-winning restaurants and internationally recognised wineries, Adelaide has become a genuine destination for food lovers. The East End, Peel Street, Henley Beach, Glenelg and many surrounding suburbs continue to attract new venues, giving locals even more reasons to stay close to home and enjoy what the city has to offer.

Combined with world-class wine regions only a short drive away, it’s easy to see why Adelaide’s lifestyle is turning heads nationally.

Big-City Events Without the Big-City Chaos

Adelaide has also found its sweet spot when it comes to events and entertainment.

The city now hosts major events including AFL Gather Round, LIV Golf, the Adelaide Fringe, WOMADelaide and international concerts, all while still maintaining the relaxed atmosphere people love.

Unlike larger cities, attending events in Adelaide often means easier parking, shorter travel times and less hassle — something locals increasingly appreciate.

Growth and Opportunity Across South Australia

There’s also a growing sense of optimism around South Australia’s future.

Major investment in defence, renewable energy, technology and infrastructure is creating new opportunities and helping Adelaide evolve into a more dynamic and modern city. Younger professionals and families are recognising they no longer need to leave South Australia to build successful careers and enjoy a great lifestyle.

A Stronger Appreciation for Community

Perhaps one of the biggest reasons South Australians are falling back in love with Adelaide is something harder to measure — community.

There’s still a genuine neighbourhood feel in many suburbs. Local cafés know your coffee order, sporting clubs remain at the heart of communities, and people still value connection and conversation.

In a fast-paced world, Adelaide offers something many people are searching for again: a lifestyle that feels manageable, connected and enjoyable.

Adelaide’s Best Days May Still Be Ahead

For many South Australians, Adelaide is no longer the city people leave — it’s the city people are choosing.

Whether it’s the beaches, festivals, food, family lifestyle or sense of community, there’s a growing appreciation for everything South Australia has to offer.

And judging by the renewed energy across the state, Adelaide’s best years may still be ahead.

While there’s a sadness to these situations, it can be an exciting time in which you’re able to create space in your life for new adventures.

As experienced local agents, we’ve helped many couples who have made the decision to downsize and make the most of the current boom in property prices to fund a new, more streamlined lifestyle.  

Perhaps the most emotional element in the strategy is the need to discard many of the possessions that you’ve accumulated over a lifetime. So below is a downsizing checklist to help remove some of the stress.   

Take your time – Don’t try to downsize all in one day or weekend. The project will be too big. It’s taken a lifetime to accumulate all of this stuff – make sure your timeframe to cull is realistic. 

Go room by room – This will help you take on a larger project in bite-size chunks. Always finish one room before moving to the next, otherwise you might quickly become overwhelmed.

Think creatively – Not everything needs to be thrown away. You can sell possessions that have value or give items to your family, friends or a favourite charity. You can now also list them with neighbourhood groups on social media and see if your possessions can find someone else who will appreciate them. 

Create a system – You’ll want a system to decide what you’re going to do with each item, so it’s best to be organised at the start of the project. Create different piles for keep, sell, donate and throw – and be tough when allocating. 

Ask for help – Don’t be afraid to seek help from family and friends – especially your kids! – but be clear with your instructions for them.

Go carefully – It’s easy after a while to become a little careless. And that’s when you might throw away something that you’ll regret later. Put some time if you can between the sorting, and the decision to sell, donate or throw out just so you can revise if you need to. (But that doesn’t mean you keep everything!)

Make a floor plan – If you’re in the great position of knowing where you’re moving to, then make a floorplan for each room and make sure you have measurements. This will help you qualify what’s in and out based on size and room allocation. 

Keep notes – It’s a smart idea to make a note of each item you intend to keep and why. You might add additional information, such as which room it will be kept or stored. The need to justify can help you cull just that little bit harder. 

Call a removalist – Once you’ve completed this project, get quotes on the cost of moving the items you’re keeping to your new home. This will help you decide whether you need to re-evaluate a few items.

Call a charity shop – Some charitable organisations offer a pickup service which can be helpful. It will also give you security about the items being useful to them – or if you need to find an alternative solution. 

Ashley Williams – 0450 327 772

Between interest rates, insurance, fuel and just about everything else creeping up, it’s fair to say 2026 has kept us all on our toes. And whether you’re renting, owning, investing or just trying to keep everything afloat — we get it.

So… what’s actually happening in the property market?

Despite everything going on, the local market is still moving — just a little differently than we’ve seen in the past few years.

Here’s what we’re seeing on the ground:

• Buyers are still active, but taking a bit more time to make decisions
• Well-presented homes are still achieving strong results
• Rental demand remains high, with very limited supply
• Tenants are feeling the pressure too, and we’re seeing more conversations around affordability

In short — it’s not “boom times”, but it’s not doom and gloom either.

A quick note from us

We’re having more honest conversations lately than ever before — with landlords, tenants, and homeowners all navigating slightly different challenges.

If you’re feeling unsure about:

• your investment property
• whether to sell (or not)
• rent increases and legislation
• or just what your next move should be

You’re not alone — and you don’t need to have it all figured out.

Sometimes you just need a chat

No pressure. No sales pitch. Just real advice.

If you want to understand where you stand or talk through your options, we’re always here.

📞 Get in touch anytime
Selling SA Homes – 0450 327 772
Local. Loyal. Results-driven.

While price growth has moderated and buyer behaviour has become more considered, demand remains steady and supply levels continue to influence outcomes across many Adelaide suburbs.

LISTING LEVELS REMAIN BELOW LONG-TERM AVERAGES

Total listings across Adelaide remain below long-term averages, a trend that continues to shape market conditions. Lower advertised supply has been a key factor supporting prices in recent years, particularly in well-located suburbs.

This is supported by CoreLogic’s Advertised Supply data, which tracks the volume of properties listed for sale relative to historical norms.

With fewer properties available for sale, well-presented homes that are priced appropriately are generally facing less direct competition.

CONTINUED INTEREST FROM INTERSTATE BUYERS

Alongside local demand, Adelaide continues to attract interest from interstate buyers.

Ashley Williams from Selling SA Homes notes that the agency is continuing to see a steady flow of enquiries from interstate buyers, particularly from those seeking relative value, lifestyle appeal and longer-term stability compared to larger capital cities.

“We’re continuing to see a steady flow of enquiries from interstate buyers,” says Ashley Williams. “Many are drawn to Adelaide for its relative affordability and lifestyle, and they’re coming into the market well-researched and ready to act when the right property comes up.”

ADELAIDE HOME VALUES: GROWTH HAS MODERATED, NOT REVERSED

Adelaide dwelling values continued to rise through 2025, although the pace of growth has eased from earlier peak periods.

According to CoreLogic’s Home Value Index, Adelaide recorded continued annual price growth through late 2025, with values moderating rather than reversing. This reflects a market supported by supply constraints and consistent buyer demand.

DAYS ON MARKET HAVE INCREASED SLIGHTLY

Time on market has increased compared to 2025, reflecting more deliberate buyer behaviour.

CoreLogic’s Days on Market data indicates that average selling time across Adelaide now sits broadly in the mid-30 to low-40 day range, depending on suburb and property type. Buyers are taking more time to compare options, and homes that are overpriced are more likely to sit.

AUCTION RESULTS REMAIN SOLID WHERE USED

While Adelaide is not a high-auction-volume market, clearance rates where auctions are used have remained relatively healthy.

CoreLogic Auction Results reporting through 2025 shows clearance rates generally sitting around the low-70% range, indicating that competitive outcomes continue to occur when pricing, presentation and buyer demand align.

WHAT THIS MEANS FOR SELLERS IN ADELAIDE

For homeowners considering selling in 2026, current conditions continue to reward informed decision-making and strong preparation.

Key takeaways include:

• Supply remains constrained, supporting price stability 
• Buyer demand is present but more selective 
• Pricing accuracy is critical 
• Presentation and marketing quality influence outcomes

THE ADELAIDE MARKET OUTLOOK

Based on trends identified across CoreLogic market reporting, Adelaide is expected to continue tracking through a period of steady, modest growth rather than sharp fluctuations. Suburbs with limited stock, strong lifestyle appeal and established infrastructure are likely to remain resilient.

IS IT TIME TO SELL

The Adelaide property market in early 2026 is best described as balanced and supported.

Sellers who understand buyer expectations and approach the market with clear strategy and realistic pricing are continuing to achieve solid results.

For your free-market appraisal call Ashley on 0450 327 772.

Let’s face it—saving for a deposit while renting can feel like an uphill battle. With the right planning and advice, stepping into the property market is absolutely achievable. Here are a few practical tips to help guide you on your journey to home ownership:

Set a Realistic Budget

Start by determining how much you can afford to spend on a property and understand your borrowing capacity. Don’t forget to factor in all the associated costs of buying a home, such as stamp duty, legal fees, and building inspections.

Explore Government Grants and First Home Buyer Schemes

There are several government incentives available to first home buyers. Do your research to find out what’s on offer and whether you are eligible—these could significantly reduce your upfront costs.

Speak to a Bank or Mortgage Broker

A qualified lender or broker can give you a clearer picture of your borrowing power, explain the different types of loans available, and help you choose the right one for your situation.

Whether you are just starting to explore your options or already have a savings plan in place, we are here to help. Reach out to our team today for friendly, advice on buying your first home—we’ll guide you every step of the way.

Ashley Williams – 0450 327 772 – ashley@sellingsahomes.com.au
Henry Vong – 0423 245 373 – henry@sellingsahomes.com.au

rba.gov.au

In response to this decision, several financial institutions have announced adjustments:

• Beyond Bank: Decreasing interest rates by 0.25% for variable owner-occupier, investor, and commercial loans, effective from 4 March 2025.

beyondbank.com.au

• Major Banks: Institutions like Westpac, CBA, NAB, and ANZ have committed to passing on the full rate cut to consumers.

afr.com

For South Australian homeowners, this reduction could mean savings on mortgage repayments. For instance, a household with a $600,000 mortgage might see monthly repayments decrease by approximately $97.

theaustralian.com.au

However, while borrowers may benefit, savers could experience reduced returns on deposits. Financial experts advise reviewing current savings rates and exploring more competitive options to maximize returns.

dailytelegraph.com.au

The RBA has indicated that further rate cuts are not guaranteed and will depend on future economic conditions. Governor Michele Bullock emphasised the need for caution, stating that while the recent cut reflects progress on inflation, the board remains vigilant about global uncertainties and domestic wage pressures.

1. Deck the Halls with Local Finds

Support local businesses this Christmas by shopping for decorations at SA markets and boutiques. The Adelaide Central Market, Fleurieu Peninsula artisan fairs, and Barossa Christmas Markets are great places to find handmade wreaths, ornaments, and candles. Add a uniquely South Australian touch to your home with eucalyptus garlands or seaside-inspired décor.

2. Illuminate Your Home with Festive Lights

Christmas lights are a must for spreading cheer! From subtle fairy lights to dazzling displays, there’s something for every taste. Why not take inspiration from the famous Lobethal Lights Festival and go all out? Don’t forget to drive around your neighbourhood to enjoy other fantastic displays—Glenelg and Semaphore always impress!

3. Host a Backyard Aussie Christmas BBQ

Embrace the warm South Australian summer by taking Christmas celebrations outdoors. Fire up the BBQ, hang some festive bunting, and set up a long table under the fairy lights. Serve SA specialties like Barossa ham, Spencer Gulf prawns, and Riverland stone fruit for dessert.

4. Create a DIY Christmas Corner

Make a cozy Christmas nook in your home! Add some cushions, a Christmas tree, and a basket of goodies for guests (or yourself!). Bonus points if you include SA-themed gifts like wine from McLaren Vale or chocolates from Haigh’s. It’s a fun way to make your home extra inviting and photo-ready for social media!

5. Prepare Your Home for Guests (and Future Buyers!)

The holiday season often brings visitors—and maybe even potential buyers if you’re thinking of selling or renting your property in the new year. A fresh coat of paint, some festive curb appeal, and a welcoming entryway could make your home shine this Christmas. Plus, a little tidying up means you’ll step into 2025 with ease.

South Australia at Its Best This Christmas

Christmas in South Australia is about sunshine, community spirit, and enjoying life’s simple pleasures. Whether you’re celebrating by the beach, in the hills, or at home with loved ones, take time to soak in the joy of the season.

If you’re thinking of buying, selling, or renting in the new year, let us help you find the perfect gift: a place to call home. 🎁🏡

Happy Holidays from all of us at Selling SA Homes!

Magic doesn’t always mean grand gestures or extraordinary experiences. Sometimes, it’s found in the little things that bring us joy, spark our creativity, or simply make us pause for a moment of wonder. Here are some simple ways to invite more magic into your everyday life:

1. Take a Walk with Fresh Eyes

How often do we move through the world on autopilot? Next time you take a walk, try to notice the details—the sound of the wind in the trees, the vibrant colours, or the warmth of the sun on your skin. Nature is a never-ending source of magic, and all it takes is a few moments of mindful observation to feel more connected to the world around you.

2. Create a Morning Ritual

Mornings are often rushed and chaotic, but they don’t have to be. Instead of immediately diving into your to-do list, carve out a few minutes for a simple ritual that grounds you. It could be as small as savouring a cup of tea, lighting a candle, or writing down a gratitude note. These small acts can set a tone of calm and intention for the rest of your day.

3. Read a Good Book

There’s nothing quite like the feeling of getting lost in a good book. Stories transport us to new worlds, help us see life from different perspectives, and ignite our imagination. Whether it’s a fantasy novel, a collection of poetry, or a thought-provoking non-fiction piece, reading is an easy way to bring a bit of magic into your routine.

4. Engage in Creative Play

Remember the sense of wonder you had as a child, when creativity flowed freely? Tap into that again by engaging in playful, creative activities—whether it’s doodling, journaling, baking something new, or picking up an old hobby. These moments of creativity are not only fun but also a way to reconnect with your inner spark.

5. Slow Down and Savour

In a world that celebrates hustle and productivity, slowing down can feel like a rebellious act. But sometimes, the most magical moments come when we take our time. Savour your meals, linger over conversations, or simply enjoy a sunset without rushing to the next thing. These pauses are where life’s beauty often hides.

The truth is, magic is all around us, waiting to be rediscovered. By slowing down, staying curious, and nurturing moments of joy, you can bring a sense of wonder to your everyday life. After all, the world is still full of mystery and beauty—sometimes, we just need to remind ourselves to look for it.

According to subsequent information released by the Property Council of Australia this year, several factors are influencing the supply and affordability of rental homes nationwide. These include the increase in smaller and single-person households, intrastate migration, and the trend of converting bedrooms into home offices.

Although international students have returned to Australia post-COVID, the rise in rents does not correlate with their return. In fact, rents started increasing in 2020, a period when there was no international student migration and most students had gone back to their home countries.

Despite their minor share in the rental market, international students contribute an estimated $34 billion in export income across tuition fees and living expenses, injecting substantial revenue into the Australian economy. The Property Council of Australia report also stated that Australian students account for a further six per cent of the rental market, bringing the total students looking for accommodation near universities to an estimated 1.4 million individuals.

There are essentially two types of student housing: on campus accommodation, also known as purpose-built student accommodation (PBSA), and private rental housing, which includes units or shared housing.

On-campus purpose-built student accommodation

According to the Property Council of Australia report, the current pipeline of new PBSA developments will not meet future needs, and the projected 7,770 new beds due to become available by 2026 are insufficient to alleviate demand. PBSA offers high rental yields and caters specifically to university students with rent-per-bed models and shared amenities. Despite its advantages, PBSA has a limited supply and faces high demand, making it a competitive but potentially rewarding investment.

While the government has mandated universities to build more student housing, the challenges facing the construction industry suggest that alternative solutions will need to be explored to accommodate this vital demographic.

Private rental units and shared housing

Student rental units hold the potential to deliver high rental yields, but the initial investment will be vast, considering that most student apartments are located close to universities and often in city centres where property comes at a premium. The risk of having vacant units over the December/January holidays might outweigh the benefits of owning a valuable piece of real estate.

The most popular form of student accommodation in Australia is shared housing. These larger properties provide private rooms and shared facilities, including a kitchen, bathrooms and communal leisure areas, making them an affordable housing option for students.

Investing in older, second-hand properties that can be converted into student housing near universities, could present a lucrative opportunity with excellent rental yields. Additionally, these properties offer significant depreciation potential and other deductions, further enhancing cash flow.

Property depreciation refers to the natural wear and tear of a property and the assets within it. The ATO governs legislation that allows property owners of income-producing buildings to claim a tax deduction relating to this wear and tear.

Via the link below is a case study of a four-bedroom house, built in 1995 near a university in New South Wales, showcasing the impact on cash flow after claiming depreciation as a tax deduction on the rental property. The case study will further illustrate the difference in cash flow when the investment property is converted to student accommodation.

The original investment property was purchased by an investor in 2021 and subsequently rented out to a family at $615 per week until the end of 2022, when the family moved out.

Find our more information and Schedules showcasing various types of property via the following link:

Investment in Student Housing (bmtqs.com.au)

Supplier:  BMT Tax Depreciation Quantity Surveyors

Always seek independent advice.  Speak to your Financial Advisor, or accountant for financial advice.

We are here for all of your real estate goals:

• Ashley Williams – ashley@sellingsahomes.com.au – 0450 327 772
• Jo Wilkin – sales@sellingsahomes.com.au – 0402 217 827
• Glenda Vester – rentals@sellingsahomes.com.au – 0424 784 123

RLA 280800