Adelaide's off-the-plan market has not been affected by the state government's recent increase in the foreign investor surcharge, says Rob Mitchell, director of projects with Ouwens Casserly.

Mitchell told SCHWARTZWILLIAMS, "I wouldn't expect it to have an effect immediately.

"The off-plan market is a slow burn. The incubation period of people coming into that market is months."

Last November, the South Australian government increased the foreign investor surcharge from 4 per cent to 7 per cent. The increase takes place this month and must be paid on settlement date.

In its last budget, the federal government also introduced a raft of changes aimed at cooling foreign demand for Australian real estate. The federal government: limited to 50 per cent the amount of dwellings foreigners can buy in a single project; said it would impose a levy on dwellings left empty; removed the main residence capital gains tax exemption for foreign buyers; and increased withholding tax from 10 per cent to 12.5 per cent.

Buyers from Asia are more interested in their children receiving good schooling than a 3 per cent impost, said Mitchell.

In particular, Adelaide's eastern and beach suburbs remain highly sought after, especially close to good schools, he said.

Mitchell singled out Linden Park Primary School, Rose Park Primary School, and Glenunga International High School as being particularly popular schools.

However, Mitchell did concede that Adelaide's northern suburbs had been "hit hard".

"Holden closed with 1,700 employees but that has been soaked up by the submarine contract and defence industries around there," he said.

"We (South Australia) are now very much a defence, technology, and wine economy," said Mitchell, noting that those industries were attracting buyers from New Zealand and all over Australia.

However, Mitchell did say, "We could still do with some more net population growth."

Read more about foreign buyers of Australian real estate:

Real Estate Institutes support easing for foreign buyers

Chinese demand for Australian real estate is declining

International buyers continue to focus on Sydney and Melbourne

New Zealand bans foreign property buyers