Key takeaways
Adelaide's market remains resilient with a 1.3% jump in dwelling values in February, pushing the quarterly growth to a solid 4.3% even as other capitals begin to cool.
The "affordability pivot" is in full effect, with lower-quartile house values surging 4.7% over the last three months, while the premium sector has slowed to a crawl at just 0.3%.
Extreme supply constraints continue to underpin price growth, as total advertised listings track 23% below the five-year average, leaving buyers with very limited options.
Adelaide’s property market has maintained a steady upward trajectory in early 2026, with dwelling values rising 1.3% in February.
While the pace of growth has moderated slightly from previous peaks, the city continues to outperform the larger eastern capitals.
On a rolling quarterly basis, Adelaide values have climbed 4.3%, driven by a persistent imbalance between high buyer demand and a chronic shortage of available stock.
Leading Segment and Growth Drivers
The market remains heavily segmented by price point.
As interest rates and cost-of-living pressures impact borrowing capacity, activity is increasingly concentrated in the more affordable sectors of the market.
Units and lower-quartile houses are currently the primary engines of growth, with demand in these segments significantly outpacing the premium end of the market:
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To Now After The Rate Rise.
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- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
| Market Segment | 3-Month Value Change | Quarterly Performance |
|---|---|---|
| Unit Sector | +4.4% | Resilient growth as buyers seek entry-level price points. |
| Lower Quartile (Houses) | +4.7% | Intense competition among first home buyers and investors. |
| Upper Quartile (Houses) | +0.3% | Sharper slowdown as serviceability limits premium demand. |
Source: Cotality, March 2026
Critical Supply Shortage
One of the strongest supports for Adelaide’s property prices is the extremely low level of advertised inventory.
Note: Listing volumes remain well below historical averages, keeping conditions firmly in favor of sellers.
| Listing Metric | Status (February 2026) |
|---|---|
| Total Advertised Listings (vs. 5-Year Average) | 23% Lower |
| New Listings (vs. Last Year) | Relatively Flat |
Source: Cotality, March 2026
Outlook and Risks
The outlook for Adelaide through the remainder of 2026 is one of continued, albeit more uneven, growth.
While the city’s relative affordability compared to Sydney and Melbourne remains a drawcard, the market is not immune to the broader economic headwinds of high interest rates and regulatory tightening.
Key watchpoints for 2026:
- Borrowing Capacity: The February rate hike continues to ripple through the market, further eroding the capacity of buyers to stretch their budgets.
- Stock Levels: Any significant increase in new listings heading toward the middle of the year could help ease some of the competitive pressure for buyers.
- Rental Market Influence: With vacancy rates holding near 1.0%, many renters are still looking to pivot into homeownership where possible, supporting demand at lower price points.
Overall, Adelaide’s market balance remains skewed toward sellers due to the supply crunch, though buyers are becoming increasingly selective as affordability thresholds are tested.
