Overseas buyers showing record Interest in South Australian properties

Here are some well-known facts about the South Australian property market overseas buyers in recent years. Several factors have contributed to this trend, such as the state's desirable lifestyle, relative affordability, and smart urban planning decisions.

A Growth In International Engagement

International buyers are searching for more properties and the most interest came from Indians, who searched 23% more than last year, according to PropTrack's Overseas Search Report. Australia now stands as the eighth most searched location for those looking to buy property in Adelaide.

Outer East Melbourne Leading Choice for Overseas Buyers

Specific suburbs in South Australia are favoured by overseas buyers. The Adelaide CBD is still the main drawcard, but there is also interest in beachside pockets like Glenelg, Henley Beach and Hallett Cove. Suburbs on the city fringe, such as Norwood and North Adelaide, and hills regions, like Stirling and Mount Barker, are also proving popular. This unique interest highlights the diverse lifestyle opportunities available to international investors within South Australia.

Foreign Investments and the Government Policy Affecting It

However, recent government policies have created challenges for foreign investors, even as interest in the country grows. Australia's government has introduced stricter rules and higher taxes on foreign property ownership. 7% Foreign Ownership Surcharge on Residential Property in South Australia These efforts help  to guarantee that foreign investment provides more economic benefit to the local population. History suggests a similar approach by other Australian cities like Sydney & Melbourne has repelled international property purchasers, so Adelaide may follow suit as the tide of these policies is rolled out.

Shifts in Investment Patterns

Foreign investors have also reacted to stricter regulations. A large number of former foreign buyers, especially Chinese nationals, received Australian residency status and are now able to buy houses without the need for Foreign Investment Review Board (FIRB) approval. Under this restructuring, official approvals of foreign buyers have declined, amounting to $6.6 billion for the year ending June 2024, down $1.3 billion from the preceding year. But this decline is slightly misleading — because the change in residency status means many purchases no longer count as foreign investment.

Regional Investment Trends

Outside of Adelaide, the Fleurieu Peninsula was a top drawcard for local, interstate and overseas money. The region’s picturesque hinterland, reasonable coastal real estate and improved facilities, have made it a popular destination. Due to COVID-19 adding to the life of remote workers, towns like Victor Harbor, Port Elliot, and Goolwa have increased around 30% in the past few years. The trend reflects the wider interest in the South Australian property market.

Future Outlook

The South Australian property market continues to attract overseas interest — but it might take some time to determine how much recent regulatory changes actually impact investment. Increased demand coupled with this shift in investment policies could change market dynamics over the next few years. This will further test how stakeholders navigate the evolution of the state as they work to keep the state attractive to international investors while fostering sustainable development that promotes affordability for local residents.