Adelaide property market data, trends, forecasts

Adelaide property market news

The Adelaide property market has gone from strength to strength since the start of 2020. Property prices exploded by +44.7 per cent from the pandemic low point to the July 2022 peak, making it the biggest growth market of all the capital cities. Values also held much firmer during the nationwide downturn, and prices are now hitting new record levels according to the latest CoreLogic data. 

Adelaide property prices - September 2024

As one of the country's most affordable capital cities, rising interest rates have had less of an impact on the Adelaide housing market as investors in particular seek out better value options. Even so, property prices started notching down slightly mid-way through 2022 before rebounding vigorously in 2023, and the pace hasn't stopped in 2024. 

A clear shortage of listings is one of the driving factors behind Adelaide's persistent strength. Compared to 12 months ago, new listings are down by -1.6 per cent but total stock is down -12.4 per cent for the South Australian capital, suggesting supply is still exceptionally tight. By comparison, total sales in the 12 months to September 2024 were up +16.6 per cent per cent year-on-year, so buyer demand is on the up. 

Adelaide is also one of the only capital cities where Days on Market (DOM) has held relatively steady. As of September 2024, DOM is 26 which has gradually fallen from 31 days 12 months ago.

Adelaide house prices

Australia's housing boom of 2021 was very much house-led, so it stands to reason that houses would be hit harder than units in the downturn that followed. Adelaide houses corrected at a faster pace than units, though both are now delivering strong monthly performance once again. 

Adelaide house prices - September 2024

Adelaide's median house price shot up another +1.3 per cent in September, bringing quarterly movement to +3.9 per cent. Annual growth is well into positive territory, sitting at +14.4 per cent for the year.

Top 5 Adelaide suburbs for first home buyers - houses

Adelaide's median house price skyrocketed over the past two years, making affordable housing harder to come by for first home buyers. Here are some of our top picks for Adelaide suburbs where you can buy below the median house price. 

Top Adelaide suburbs under $700,000 house price

Adelaide unit prices

Adelaide's unit market held especially firm throughout the national downturn as both investors and first home buyers sought out affordability. Now that prices are seeing more upward pressure, units are delivering strong performance once more. 

Adelaide unit prices - September 2024

The median unit price in Adelaide jumped by a solid +1.4 per cent in September, bringing quarterly gains up to +4.8 per cent. Over the past 12 months, Adelaide unit values have surged by another +17.2 per cent, bringing the median price to just under $565,000.

Adelaide property market forecast 2024-25

After such historic growth over the past two years, economists say a market correction was inevitable. Adelaide was one of the least affected markets and is now seeing considerable growth and new record prices return. Is there more on the horizon?

NAB's latest Adelaide house price forecast has values gaining a strong +16.8 per cent in 2024 with another +8.3 per cent to come in 2025. 

Westpac's Adelaide real estate forecast tells a slightly softer story, suggesting prices will increase by a total +12.0 per cent in 2024 with just +3.0 per cent due in 2025.

Big four banks' Adelaide home price forecasts 2024-25

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the rest of the year. Interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike. 

Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks mostly expect there will be no further hikes, with rate cuts to begin in the later stages of 2024 or early in 2025.

Big four banks' cash rate forecast 2024-25

Adelaide is now seeing units outperform houses significantly, and there are a number of reasons that this trend could continue. 

For one, the 2021 boom was house-led. Affordability in the house market has reached critical levels on a national level, and Adelaide has started to feel that pain too. With house prices gaining a significant amount more than units, they also had further to correct. 

Units are also expected to appeal further to incoming investors in the face of Adelaide's exceptionally tight rental market which has seen asking rents rise well over +10 per cent annually. 

What are industry experts saying about the Adelaide property market?

Andrea Heading - CEO at REISA

"REISA is pleased that the new record median price and increase in the volume of sales underscores the strength and the resilience of the South Australian real estate market.

However, it is also keenly aware that the issues of supply, inflation, high interest rates and punitive state land taxes will always have a deleterious effect on the real estate cycle.

Once these factors are brought under control, an upward trajectory will seem more consistent and sustained."

Anna Porter - Principal at Suburbanite

"Adelaide is shaping as the market to look out for into 2024, despite the City of Churches being largely overlooked by many buyers agents and property investment firms.

With an extensive infrastructure pipeline, job creation, relative affordability and the return of international travellers and migration, Adelaide likely still has growth to unfold.

There is sustainability around the market and although other locations are retracting and softening in the existing environment, Adelaide is still seeing the buoyancy that has made it an attractive market for clever investors.

On the ground, the market is still very much ripe for investors and astute investors are taking advantage of this opportunity while others are nervous and sitting on the sidelines, waiting for something to change."

Adelaide house price graphs and charts

The latest Adelaide property price graph from CoreLogic's monthly chart pack clearly shows the rapid acceleration and sustained highs of the Adelaide property market before a relatively shallow dip. Now prices are well and truly on the rise again.

The massive upward surge from early 2021 follows a lengthy period of stagnation for Adelaide, becoming one of the most explosive times of growth in Australian history. It would take a similarly historic crash to wipe out even the majority of the gains built up in Adelaide over the recent boom. As 2023 showed, any chance of a crash of that magnitude is now gone. 

Looking at the wider context of the housing market over time, we can see in this 30-year house price growth chart that Adelaide's recent gains have shot prices up at a historic rate.

The declines over recent months pale in comparison to the surge in growth seen across Adelaide since the pandemic began.

Adelaide property info for sellers

According to Domain's figures, the Adelaide auction clearance rate has surged ahead in 2023, although it's worth noting that auctions are relatively rare in Adelaide. Days on Market (DOM) is holding strong and often sits below the national average, suggesting the Adelaide market is still performing well for sellers.

Property investing in Adelaide

The Adelaide property market is looking promising for investors as rental vacancies are around record lows, asking rents continue to increase at pace, and capital gains look comparatively strong.

Top 5 suburbs for Adelaide investors

BuyersBuyers' latest Investor Special Report detailed some of the top suburbs where Adelaide property investors could find strong potential. 

The report noted that "There is a compelling case for investors to seriously consider a suburban house in Adelaide, particularly for those mindful of their entry price and seeking an attractive rental yield as property prices remain very reasonable."

Top suburbs for investors to buy in Adelaide with budgets from $450,000

"There are stories in the media about studio units renting for $400 a week. If rents are going to spike, that's generally going to bring investors into that market as an inflation hedge as much as anything else."

Looking to invest in Adelaide property? 

• Check out our list of best suburbs to invest in Adelaide for 2023
• Dig into some expert advice on where to find the top 10 suburb picks for Australian investors

Find out the Adelaide suburbs with the highest rental yield