Adelaide, nation's strongest property market, to kick more goals in 2025

A shortage of stock, nation-leading rental growth, and healthy ongoing buyer demand — from both locals and out of state investors — are continuing to fuel Adelaide’s residential property market. 

House and unit prices in Adelaide grew faster than any other capital over the past three months, according to CoreLogic, and while growth is slowing, experts say fundamentals remain strong. 

According to CoreLogic Adelaide dwelling values grew 1.2 per cent over the past quarter, followed by Brisbane at 0.9 per cent. 

Over the past 12 months, Adelaide dwelling prices grew 11.9 per cent, behind only Perth, which notched up 14.3 per cent for the year. 

While rental growth has eased across most of the nation, rental growth for Adelaide units surged 9 per cent over the past year — more than any other capital — while house rents grew 5.1 per cent, second only to Perth’s 6.4 per cent. 

According to CoreLogic, a “dearth of homes available for sale” was helping buoy the market — with property listings in Adelaide 33.9 per cent lower than their five-year average, a bigger gap than any other capital. 

Experts say that while prices were likely starting to near their peak, there remained growth potential in the market. 

While Adelaide has experienced strong price growth over the last few years and is climbing toward its peak, buyer demand continues to drive prices higher, buyers agent Peter Theodorou of Mindset Property said. 

Properties were “selling above price guides” and “often after just one or two open homes. 

“With the recent interest rate cut and possible future cuts, a healthy economy, and strong buyer demand, there are signs that more price gains are expected in 2025,” Mr Theodorou told Australian Property Investor Magazine. 

He said further interest rates cuts would drive prices higher, but even without further cuts – following last month’s 25 basis point easing — the Adelaide market would remain robust. 

“Lower rates will boost confidence, raise borrowing capacity, and drive prices even higher,” Mr Theodorou said. 

“However, if we don’t see any further rate cuts, I still expect solid price growth across Adelaide in 2025—just at a slower pace.”

Certain price range growing fastest

Ellam Property buyer advocate Jess Ellam said low supply and steady demand continued to underpin the Adelaide market, with the rate cut to likely boost buyer confidence and competition. 

“As we head towards to end of the first quarter, property prices have remained strong, with lots of buyer competition from local, interstate and overseas investors,” Ms Ellam told API Magazine. 

She said demand from investors and first-home buyers would likely see prices continue to increase steadily, albeit showing moderate gains rather than sharp increases. 

According to CoreLogic, the median Adelaide dwelling value is now $822,201 — behind Sydney ($1.186m), Brisbane ($894,425) and Canberra ($846,955) — with more affordable suburbs leading the price growth. 

The Playford local government area in Adelaide’s northern suburbs was the strongest performer over the past 12 months, with dwelling prices growing 15.9 per cent, to a median $608,962. 

The northern suburb of Salisbury was the third strongest performer over the year, delivering 14.2 per cent growth, to a median dwelling value of $692,620. 

Regional South Australia is also continuing to deliver strong returns. 

The best performer was the Murray and Mallee region, in the state’s south-east, where dwelling prices increased 17.5 per cent over the past year, to a median of $442,171. 

The Yorke Peninsula, as well as the famed wine growing Barossa region, also performed strongly. 

Median dwelling values in Yorke Peninsula grew 15.1 per cent over the year, to a median of $468,250, with Barossa prices growing 13 per cent, to a median of $674,932. 

Mr Theodorou said the population of the Town of Gawler north of Adelaide, which “serves as the gateway to the Barossa Valley” was growing at twice the state average. 

Likewise, Playford in Adelaide’s north was experiencing strong population growth. 

“Both areas are benefiting from the $867 million Northern Connector, linking them to Port Adelaide and the CBD,” Mr Theodorou said. 

“Suburbs like Craigmore, Evanston Park, and Gawler East offer great value.” 

For buyers seeking a coastal lifestyle, suburbs including Seaford, Port Noarlunga, and Christies Beach offered excellent value with large, subdividable blocks near the beach, Mr Theodorou said. 

“In addition to their proximity to Adelaide's top wineries and beaches, these areas will benefit from the $15 billion River Torrens to Darlington project, which will significantly improve transport links to the CBD.” 

Michelle Lewis, Director and lead buyers’ agent at Michelle Lewis Property, said units were expected to continue to show healthy growth, as buyers were priced out of buying houses. 

“What I am seeing is the market is continuing to grow especially in the $600,000-$800,000 zone,” she said. 

“Units have surged in price and been amongst my highest performers in equity gain in the last 18 months.

“This pattern will continue I believe as people are priced out of the housing sector. This is true for both investors and owner-occupiers,” Ms Lewis said.

Home opens drawing huge crowds

Rebecca Hall, Managing Director of buyers’ agency Hallmarq, which has offices in Adelaide and Sydney, said she believed there were still gains to be made in buying in Adelaide in 2025/26. 

“South and western suburbs are performing extremely well, with coastal suburbs of Adelaide still affordable for the savvy investor,” Ms Hall said. 

“We purchased an original well-kept three-bedroom house on 800 square metres in Hallett Cove a few blocks from the beach for under $1 million. 

“If you were to buy this house in Sydney’s northern beaches you would be looking at $3.5 million-plus and only on 450 square metres.

“This property had over 72 buyers through the door on first open inspection and we purchased it within two days,” Ms Hall said. 

She said the lack of supply would continue to be an issue in the market. 

“There is little supply in Adelaide for downsizers, thus baby boomers are holding onto their houses for much longer, which in turn has buyers fighting for what little offerings come to market and propelling the prices up,” Ms Hall said.