Adelaide housing market update [video] | October 2025

Key takeaways

Strong Growth Momentum: Adelaide's property market is accelerating, with home values rising 2.5% over the last quarter—the highest three-month growth rate since November of the previous year.

Severe Lack of Supply: A critical shortage of available homes is fuelling competition and pushing prices higher, as advertised listings are currently 36% below the five-year average.

A Seller's Market Emerges: With high demand and low stock, conditions strongly favour sellers, particularly in the more affordable segment of the market which is seeing the fastest value increases.

Spring has sprung, and so has the Adelaide property market. After a period of steady movement, the latest data shows a significant surge in momentum, positioning Adelaide as a standout performer. The strong buyer demand coupled with tight supply is creating ideal conditions for sellers and driving solid value growth across the city.

Let's dive into the key insights and what they mean for you.

The Growth Story: Values on the Rise

The numbers paint a clear picture of a strengthening market. Adelaide's home values saw a healthy 0.9% lift in September alone. This contributes to an impressive quarterly growth rate of 2.5%, the highest three-month change recorded since November of last year.

Here’s how the growth breaks down:

• Three Months: +2.5%
• Twelve Months: +6.2%
• Avg. Annual Growth (Past Decade): +7.0%

This consistent performance underscores the resilience and long-term appeal of Adelaide real estate.

Key Market Statistics: A Snapshot

For homeowners and prospective buyers, understanding the current median values is crucial. The latest figures show Adelaide property has reached new heights.

Source: Cotality, October 2025

The Driver Behind the Demand: A Classic Supply Squeeze

So, what's fuelling this upward trend? The primary factor is a significant shortage of available properties.

Advertised stock levels in Adelaide are tracking 36% below the five-year average for this time of year. This creates a highly competitive environment where more buyers are vying for fewer homes, inevitably putting upward pressure on prices. For those thinking of selling, this is a recipe for success, placing vendors firmly in the driver's seat.

Where is the Growth Strongest?

Interestingly, the most significant gains are being seen in the more affordable segment of the market.

• The lower quartile of the market saw values jump by 3.3% in the September quarter.
• In contrast, the upper quartile experienced a more moderate 1.7% rise.

This trend suggests that first-home buyers and budget-conscious purchasers are particularly active, possibly spurred on by recent improvements in borrowing capacity and government incentives.

National Tailwinds Buffeting the Adelaide Market

While local factors are key, Adelaide is also benefiting from broader national economic conditions that are fostering confidence in the property sector. These include:

• Increased Borrowing Capacity: Recent cuts to the cash rate have made borrowing more accessible.
• A Tight Jobs Market: Low unemployment provides households with greater financial stability.
• Improved Consumer Sentiment: Australians are feeling more confident about their financial situation, which is crucial for making high-commitment decisions like buying a home.
• Government Support: The expanded Home Deposit Guarantee, which allows eligible buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance, is likely to boost demand further, especially at the entry-level of the market.

What to Expect This Spring

The stage is set for a strong selling season in Adelaide.

Note: The combination of low stock levels, high buyer demand, and a positive economic outlook creates a fertile ground for further price growth.

While stretched affordability remains a key factor to watch, the current market dynamics favour sellers. If you've been contemplating a move, this spring presents a golden opportunity to capitalise on these exceptional conditions.

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