Key takeaways
Adelaide dwelling values rose by 1.2% in January, maintaining a strong upward trend that has pushed the median value to 914,203 dollars.
The market remains exceptionally competitive with auction clearance rates exceeding 80% and total listings tracking significantly below the five-year average.
Lower-priced segments are leading the growth cycle as house values in suburbs like Salisbury and Gawler rose by over 12% annually due to concentrated demand for affordable housing.
Adelaide’s housing market continues to show remarkable resilience, with dwelling values rising by 1.2% in January.
While this represents a slight moderation from the stronger gains seen in late 2025, Adelaide remains one of Australia’s most consistent performers.
The city’s median dwelling value has now reached $914,203, keeping it firmly at record price peaks despite broader economic headwinds.
The market is currently being supported by a chronic shortage of advertised stock and a highly competitive auction environment.
With preliminary clearance rates recently bouncing back above 80%, buyer demand continues to outstrip available supply across most price segments.
Adelaide Market Performance
Adelaide’s annual growth remains in double digits for the house segment, while the unit sector is also seeing significant appreciation due to affordability-led demand.
| Segment | Monthly Change (January) | Annual Change | Median Value |
|---|---|---|---|
| All Dwellings | 1.2% | 9.7% | $914,203 |
| Houses | 1.3% | 13.5% | $972,435 |
| Units | 0.8% | 14.9% (Annualized) | $666,814 |
Source: Cotality / CoreLogic Data, February 2026
High Competition and Low Inventory
The defining feature of the Adelaide market is the persistent lack of supply.
- Also read:Melbourne housing market update | February 2025
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To Now After The Rate Rise.
- 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?
Total listings are estimated to be significantly below the five-year average, which has created a "floor" for prices even as borrowing capacity diminishes.
This is evidenced by the auction market, where Adelaide returned a 83.6% preliminary clearance rate in early February—one of the highest in the country.
Lower-priced suburbs and the entry-level house segment continue to lead the way, as buyers pivot toward more manageable price points.
Suburbs such as Salisbury (+13.1%) and Gawler (+12.9%) have recorded some of the fastest growth over the past year.
Rental Market and Investor Interest
Note: Rental conditions in Adelaide remain among the tightest in Australia, with vacancy rates consistently hovering below 1.0%.
This scarcity is driving rental growth and maintaining strong interest from investors, who are attracted to the city's consistent capital gains and stable gross yields, which currently sit at approximately 3.5% for all dwellings.
Outlook for 2026
Looking ahead, Adelaide is expected to enter a phase of more moderate growth.
The February 25 basis point interest rate hike and tighter APRA lending restrictions are likely to dampen some buyer enthusiasm.
However, many analysts, including those from ANZ and KPMG, forecast that Adelaide will continue to outperform the larger capitals like Sydney and Melbourne throughout 2026, with house prices projected to rise between 6% and 8% over the full year.
