Population growth, migration, and policy incentives are fuelling a surge in South Australian land sales, with developers, investors and the aged care sector all aggressively pursuing opportunities.
Market Confidence Despite Headwinds
South Australia’s development land market has entered 2025 with strong momentum. Colliers’ Adelaide Investment Services team has already transacted over 185,000 square metres of land this year – equating to roughly $60 million in sales – with another 15,000 square metres set to hit the market.
What makes these figures striking is the resilience shown in the face of national economic headwinds. Interest rates remain elevated, materials costs are still volatile, and construction capacity is stretched. Yet demand for land in South Australia continues to climb.
According to Colliers Associate Director Rhys Newman, this is more than a blip:
“Despite broader economic headwinds, developers are continuing to invest in projects that align with the state’s growing need for housing and mixed-use precincts. The market is displaying clear confidence.”
Housing Demand at the Core
Residential and accommodation development sites now make up nearly 90% of transactions in the state. The push is being driven by a mix of population growth, interstate migration, and a rush of first home buyers encouraged by new incentives.
Recent policy changes are playing a crucial role. South Australia has followed the lead of other states by scrapping stamp duty for first home buyers and boosting the $15,000 First Home Owner Grant for new builds. This has placed even more heat on land suitable for greenfield estates, townhouses, and master-planned communities.
Colliers’ data shows 48% of home buyers are now actively seeking new or recently built homes, reflecting both affordability pressures and lifestyle preferences.
Spotlight on Key Sales
Two recent listings show the breadth of investor appetite:
- Noarlunga Downs: A 5,240 sqm block on Liguria Crescent has attracted strong developer interest. Zoned for up to three storeys with minimum allotments of 150 sqm, the site sits in Adelaide’s southern growth corridor, where house prices surged 14.3% in the past 12 months.
- Halifax Street, Adelaide CBD: A 2,310 sqm parcel in the city’s south-east has been hotly contested by both developers and owner-occupiers. The property comes with zero stamp duty, vacant possession, and short-term rental income potential. Colliers recently sold another Halifax Street site for a $6.9 million townhouse redevelopment, underscoring ongoing demand for medium-density CBD living.
Elsewhere, the Parkside aged care redevelopment (12–16 Glen Osmond Road, sold for $9.6m) and the 11,772 sqm site at Magill and Portrush Roads show that well-located land continues to command premium pricing.
Aged Care & Retirement Living on the Hunt
While traditional residential developers are driving most transactions, the aged care and retirement living sector is emerging as a powerful competitor.
As Newman puts it:
“The aged care and retirement sector is aggressively pursuing land opportunities alongside residential developers. The Parkside acquisition is just one example of this push.”
This reflects wider demographic trends. South Australia’s ageing population is expected to increase demand for retirement villages and care facilities by 35% by 2035, making land banking in strategic suburban locations a clear play.
Suburban Growth Meets CBD Demand
The mix of sites coming to market also tells a story about diversified demand. On one hand, master-planned communities in Adelaide’s northern and southern growth corridors are being snapped up by developers eager to service new families and first-home buyers. On the other, inner-city and fringe-CBD land parcels are being reimagined for townhouse clusters, mixed-use projects, and boutique apartments.
The ability for South Australia to offer both greenfield affordability and CBD lifestyle projects is strengthening its attractiveness to investors compared with the eastern states, where supply and planning bottlenecks continue to constrain opportunities.
What It Means for Builders
For builders, the ongoing pace of land sales in South Australia offers both opportunities and challenges.
- Pipeline Security: A strong market for land transactions suggests developers are banking projects for delivery in the next 2–5 years. Builders who can align early with landowners or developers may secure more consistent pipelines.
- Competitive Tendering: The rush of activity could lead to more competition for construction contracts. Builders will need to sharpen their pricing, showcase quality, and emphasise delivery capability to stand out.
- Diversified Sectors: With aged care, retirement, and mixed-use projects increasingly active, builders who can demonstrate capability beyond standard detached housing will be better positioned to capture new work.
- Policy Leverage: Builders should actively market the benefits of current first-home buyer incentives when pitching new homes in SA, as these remain a key driver of buyer behaviour.
Outlook: Momentum Into 2026
Colliers’ outlook for the remainder of 2025 is bullish. Demand fundamentals remain strong, and policy levers are actively favouring new construction. Unless there is a dramatic shift in financing or migration trends, South Australia appears set to remain one of Australia’s most active development land markets heading into 2026.
For builders, developers, and suppliers, this means now is the time to secure partnerships, pitch capability across residential and aged care projects, and position themselves in both suburban growth corridors and inner-urban renewal zones.
As Newman concludes:
“With strong fundamentals and a clear demand trajectory, Adelaide’s development land market will remain active throughout the remainder of 2025, led by residential and accommodation-focused projects.”
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