Adelaide has cemented its place as Australia’s strongest-performing capital city property market, with home prices rising faster than anywhere else in the country.
According to the May PropTrack Home Price Index, the city’s median home price climbed 11% year-on-year to reach $805,000.
New figures from Domain showed Adelaide home prices cracked the $1 million mark earlier this year — a 12.1% increase — putting the city in the same league as Sydney, Melbourne, Brisbane and Canberra.
Experts credit Adelaide’s performance to a mix of limited housing supply, strong buyer demand, and comparative affordability.
Nathan Casserly (pictured left), executive director at Ouwens Casserly Real Estate, said the market continues to demonstrate “remarkable resilience”, particularly in premium inner suburbs.
“We’re seeing strong buyer competition for well-presented, correctly priced properties, with auction clearance rates consistently high,” Casserly said.
“That said, the urgency we experienced earlier in the year has moderated slightly, with buyers becoming more considered due to broader economic sentiment and interest rate uncertainty.”
Adelaide’s house prices have grown 11.1% annually, reaching a median of $861,000, while units have also jumped 10.3% to $612,000.
Ray White SA/NT CEO Matthew Lindblom (pictured centre) said demand remains robust for homes under the $1 million mark.
“Properties below $1 million are still getting a lot of interest and attracting lots of competition among buyers,” Lindblom told realestate.com.au.
Tim Vine (pictured right), Harris Real Estate’s head of sales, echoed this, noting particular strength in mid-tier price ranges.
“There has been strong activity in the $750,000 to $1 million price bracket, as well as heightened interest in the $1.3 million to $1.5 million range, where families are seeking homes with more space - especially additional bedrooms and larger land holdings,” Vine said.
“In the past three weeks, we’ve also observed a surge in demand and pricing for larger land allotments with development potential. Many buyers are choosing to secure these sites now for future development opportunities.”
Despite strong buyer interest, the number of new listings remains tight.
PropTrack data showed new listings in Adelaide fell 6.7% in April compared to a year ago, though total listings are up 5.2% YoY.
Experts agree Adelaide’s appeal lies in its relative affordability and high liveability, but soaring prices may challenge first-home buyers. Since March 2020, Adelaide’s median home price has jumped 87.3%, far exceeding the national average of 50.1%.
Looking ahead, Adelaide’s home prices are expected to continue rising, though at a more moderate pace. A Reuters poll forecasts a 5% increase in 2025, following the city’s 80% price surge over the past five years.
Yet, rising prices are making many areas unaffordable even for dual-income households, with key workers like nurses and ambulance officers earning over $150,000 priced out of most suburbs.
Buyers are advised to act decisively, stay within budget, and understand their target suburbs. Pre-approval and agent relationships remain key advantages.
For sellers, expert consensus is clear: success lies in strong presentation, realistic pricing, and targeted marketing.
“Strategies should be reviewed if properties weren’t seeing activity in the first 14–21 days,” Casserly said.
Vine noted winter’s traditionally lower stock levels could favour vendors, especially if interest rate cuts spark fresh activity.
Lindblom added sellers should be mindful that price growth is still occurring, albeit at a slower pace than previous years.
Experts expect conditions to stabilise in the second half of 2025, though overall momentum remains positive.
“Recent inflation data and potential rate cuts have improved buyer confidence,” Casserly told realestate.com.au.
“As we head into spring, listings will rise, and we anticipate solid transaction volumes, particularly in lifestyle and downsizer segments.”
Vine said outer suburbs were seeing increased activity and affordability remained a strong draw.
“We’re seeing increased momentum in the outer suburbs - particularly in the far north and south – where larger land holdings are more attainable, and off-the-plan opportunities are appealing to a wide range of buyers,” he said.
“Continued rate adjustments will likely further support this growth.”
Beyond price, Adelaide’s lifestyle continues to attract buyers from across the country.
“You don’t just get a home at a good price point in Adelaide, you get convenience and lifestyle,” Lindblom told realestate.com.au.
“You can buy a home in a place like Glenelg for a good price, which is at the beach and a 15-minute drive to the city.
“The cost of living is lower than places like Melbourne, but more importantly, Adelaide gives you back more time because there’s less traffic and you’re closer to amenities here.
“If you think about what a person’s biggest commodity in life is, it’s their time, and giving people more time back in their life makes Adelaide attractive.”
