South Australia market trends and insights

Written by: Anthony Whyte MD, Talent International & APSCo Director

In my role of Managing Director at Talent, I often get asked by both clients and candidates what is happening in the SA market. Below are some of the trends and insights that I’m happy to share with you.

Economic Performance: South Australia has demonstrated solid economic momentum over the past year, with strong GSP growth and recognition as the top-performing state economy in CommSec’s national rankings While growth is projected to moderate in 2024–25, long-term forecasts remain steady.

Employment Trends: Employment growth is softening from 3% to 0 75% yet unemployment remains low. A stable labour market is supported by steady population growth, forecast at around 1 3% annually over the next two years.

Housing Market: The housing sector continues to drive economic activity. Adelaide led the nation in long-term house price growth, up 175% since 2005 Limited supply only 9,700 dwellings commenced in 2024 has intensified demand The Better Housing Future Plan aims to alleviate this by adding 40,000 new houses.

Business Conditions: While sectors like construction and tech are stable, the hospitality sector is under pressure. Over 10% of businesses in the sector closed in the past year, largely due to cost challenges and waning consumer spending.

Trade and Exports: Agriculture remains a key export pillar, but is facing international trade headwinds, particularly from emerging U.S. tariffs on products like beef and wine.

Strategic Investments: Future-focused investments are underway, including a $1 billion green iron fund and expanded digital infrastructure like a $100 million data centre. These initiatives aim to future-proof South Australia's economy and promote sustainable industry growth.

Tourism and Connectivity: The return of direct international flights, such as Cathay Pacific’s Adelaide–Hong Kong route, is expected to inject $32 million annually into the state economy, boosting both tourism and trade.

In summary, South Australia's market outlook is mixed but resilient anchored by strong fundamentals, challenged by sectoral headwinds, and supported by targeted investments in infrastructure, housing, and sustainability.