Adelaide housing market update [video] | September 2025

Key takeaways

Adelaide's Market is Booming: Property values in Adelaide jumped 0.9% in August, outperforming the combined capital city average and continuing a trend of strong, consistent growth.

Units are Leading the Charge: The unit market is a key driver of this growth, with values rising 1.1% for the month and 7.7% for the year, outpacing the growth in house prices.

It's All About Supply: The primary reason for the price surge is a severe shortage of available properties, with listings down a massive 33% on the five-year average, creating intense buyer competition.

As we step into spring, the national property conversation is buzzing with steady growth. But here in Adelaide, our market isn't just growing; it's thriving. August's data reveals a market with robust health, outperforming the combined capital city average and showing no signs of slowing down.

So, what’s happening in the City of Churches? We’ve broken down the latest insights from Cotality's September 2025 update to give you a clear picture of Adelaide's property landscape.

Property Values Continue Their Upward March

Adelaide's housing market demonstrated significant strength in August, posting a solid 0.9% rise in overall dwelling values. This impressive monthly growth not only surpasses the combined capitals' benchmark of 0.8% but also translates to a tangible increase of approximately $7,500 to the median home value in just one month.

This continues a period of consistent growth for the city. Let's look at the bigger picture:

• Three-Month Growth: 2.1%
• Twelve-Month Growth: 6.5%
• Average Annual Growth (Past Decade): 7.0%

This data paints a picture of a resilient and consistently performing market.

The Unit Market: Adelaide's Unsung Hero

While house prices often grab the headlines, it's Adelaide's unit market that is currently driving the stronger gains.

Note: Both sectors are in positive territory, but units are showing remarkable momentum, both monthly and annually.

This suggests a growing demand for more affordable, high-density living options within the city.

Here’s a direct comparison of the performance:

Source: Cotality, August 2025

This performance is reflected in the current median values across the city.

Source: Cotality, August 2025

The 'Why' Behind the Rise: A Classic Case of Supply and Demand

The key factor putting upward pressure on Adelaide prices is a significant lack of available stock. Listing numbers for this time of year are tracking well below average—a staggering 33% down on the five-year average.

With fewer properties on the market, competition among buyers increases, which naturally drives prices higher. This supply squeeze is a critical element underpinning the current strength of our local market. While the total number of sales over the past year has seen a marginal dip of -0.9%, the low inventory ensures that demand continues to outstrip supply.

A Snapshot of the Adelaide Rental Market

The pressure isn't just confined to buyers. Adelaide's rental market remains tight, with strong annual growth and attractive yields, particularly in the unit sector where yields are a healthy 4.5%.

Source: Cotality, August 2025

What's Next for Adelaide?

All signs point to an active spring selling season. The combination of strong buyer demand, a resilient local economy, and critically low supply levels creates a firm foundation for continued price growth. While affordability will remain a key factor, Adelaide's relative value compared to eastern capitals keeps it an attractive option for buyers and investors alike.

We'll be keeping a close eye on new listings as they come to market this spring to see if supply can begin to meet the robust demand. Stay tuned for next month’s update!

About Tim Lawless Tim is Research Director at Cotality (formerly CoreLogic), analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au