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.
As we move into the second half of 2025, the Adelaide property market continues to demonstrate resilience and steady growth. While the pace has moderated compared to previous highs, the latest data from June reveals a market underpinned by strong fundamentals.
Adelaide's dwelling values have continued their upward trajectory, although the pace of growth has eased. This reflects a broader national trend where interest rate cuts have fueled buyer sentiment, while affordability constraints are beginning to temper the market's acceleration.
- Monthly Growth (June): +0.5%
- Quarterly Growth (June Quarter): +1.1%
- Annual Growth (Past 12 Months): +8.0%
- Average Annual Growth (Past Decade): +6.9%
While the monthly and quarterly results show a slight underperformance compared to the national average, the annual growth rate remains robust. However, it's worth noting that the current 8.0% annual growth is a significant moderation from the 14.5% seen a year ago, indicating a market that is stabilising.
Adelaide housing market trends
The consistent growth has pushed Adelaide's median property values to new heights. Here are the latest figures as of June 2025:
| Property Type | Median Value |
|---|---|
| Median Dwelling Value | $837,176 |
| Median House Value | $888,869 |
| Median Unit Value | $606,995 |
Source: Cotality Australia
The rental market in Adelaide remains tight, providing strong returns for investors. While the annual pace of rental growth is moderating, yields remain attractive, particularly in the unit sector.
| Metric | Houses | Units |
|---|---|---|
| Weekly Rent | $610 | $550 |
| Gross Rental Yield | 3.5% | 4.6% |
| Annual Change in Rent | 4.2% | 7.2% |
Source: Cotality Australia
Sales activity in Adelaide has seen a healthy increase over the past year, reflecting sustained buyer interest despite ongoing affordability challenges.Over the last 12 months, a total of 26,735 properties were sold, marking a 5.9% increase in sales volume compared to the previous year.
This indicates a solid level of demand in the market, further supported by a subtle 3.1% rise in advertised supply levels relative to a year ago, which may be helping to absorb some of the buyer demand and temper the rapid price growth seen previously.
Adelaide house prices - the longer-term data
Looking ahead, the Adelaide property market is being shaped by several competing factors.
On one hand, the prospect of further interest rate cuts, a tight labour market, and persistently low housing supply are expected to support property values. On the other hand, worsening affordability constraints and a moderation in population growth may apply the brakes to the rate of growth.
Note: While the explosive growth of the pandemic-era housing boom is behind us, the foundations are in place for continued, modest growth in Adelaide's housing values through the remainder of 2025.
It remains a seller's market, but the slight increase in supply offers a glimmer of hope for buyers navigating this competitive landscape.
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