Key takeaways
Adelaide's property market is a national leader, posting powerful annual price gains that rank it among the top-performing capital cities.
In contrast to soaring sales prices, Adelaide's rental market is cooling as affordability pressures and easing demand temper growth.
Anticipated rate cuts will support the market, but record-low affordability is expected to moderate the pace of future growth.
While national dwelling values have been on the rise, Adelaide's market has continued its remarkable run, demonstrating incredible resilience and posting some of the strongest growth figures in the country.
Adelaide’s property market has not just been strong; it's been a standout performer. Home values in May rose another 0.4%, contributing to a staggering 8.6% annual gain. This impressive figure puts Adelaide on par with Perth for the highest annual growth across all Australian capital cities.
What does this mean in real terms for homeowners?
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12-Month Gain: The typical Adelaide dwelling value increased by approximately $65,400 over the past year.
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5-Year Surge: Over the last five years, Adelaide housing values have surged by an incredible 73.7%, adding around $352,000 to the median dwelling value.
Adelaide housing market trends
This sustained growth has led to a significant shift in Adelaide's standing. It now boasts the fourth-highest median dwelling value of any capital city, behind only Sydney, Brisbane, and Canberra.
Here's a snapshot of the key figures for Adelaide's dwelling values:
| Median Values (as of May 2025) | |
|---|---|
| Median Dwelling Value | $829,695 |
| Median House Value | $882,157 |
| Median Unit Value | $600,071 |
| Change in Dwelling Values | |
| Three Months | +1.3% |
| Twelve Months | +8.6% |
| Avg. Annual Growth (Past Decade) | +6.8% |
Source: Cotality Australia
While property values continue their upward march, the story shifts when we look at the rental market. The pace of rental growth in Adelaide has started to slow down, reflecting a broader national trend.
The annual change in rent has eased to 4.9% over the 12 months to May. While still a solid figure, this is the lowest annual rental growth rate Adelaide has seen since February 2021.
This slowdown is likely driven by a combination of affordability constraints hitting tenants' budgets and the normalisation of net overseas migration, which is easing rental demand pressure.
Rental rates and yields (Adelaide):
| Weekly Rent | |
|---|---|
| Houses | $600 |
| Units | $550 |
| Gross Rental Yield | |
| Houses | 3.5% |
| Units | 4.7% |
| Annual Change in Rent | |
| Houses | +4.3% |
| Units | +7.3% |
Source: Cotality Australia
Adelaide house prices - the longer-term data
Adelaide's property market has shown incredible resilience, shrugging off the pressures of high interest rates and cost-of-living concerns that have impacted other cities more severely.
Looking ahead, the outlook remains positive. The combination of lower interest rates and renewed confidence is expected to support a continued, albeit more modest, rise in housing values through 2025. While the breathtaking pace of the last five years may moderate, Adelaide's market is well-positioned to remain a stable and desirable place for homeowners and investors alike.
- Also read:Perth housing market update [video] | June 2025
- Also read:Adelaide housing market update [video] | June 2025
- Also read:Australian housing market update | June 2025
- Also read:Melbourne property market forecast for 2025 | Is it a good time to invest in Melbourne?
- Also read:Sydney property market forecast for 2025. Is it a good time to invest in Sydney?
