Land, Proximity and the Adelaide Squeeze

Adelaide's unit market is rising as buyers priced out of houses return to their preferred suburbs, accepting less land for proximity. The unit market typically trails the housing cycle by about two steps, with unit prices eventually replacing former house prices over a full cycle; a Kensington unit once worth $430k now sits near $750k. Buyers who leapfrog several suburbs secure homes, while those chasing the market repeatedly miss out. State government priorities determine whether development favours urban sprawl or infill. Demand splits by age: under-40 buyers are driven by affordability, while those in their 50s and 60s increasingly choose lock-and-leave apartments by choice, holding more disposable cash for travel. Older units are typically larger (120–130sqm, double brick) than new builds, which shrink as developers cut costs. Adelaide's rental market remains the nation's tightest, with more people than housing; tenancy reforms and rising interest rates have pushed some landlords out, leaving tenants and landlords both feeling disadvantaged.