Adelaide housing market update [video] | November 2025

Key takeaways

Growth Accelerated Sharply: Adelaide home values saw a significant jump of 1.4% in October, making it the city’s largest monthly gain since July last year.

Affordability Drives Demand: The strongest growth (9.6% annually) occurred in the lower quartile, indicating buyer demand is concentrated in the most affordable segments of the market.

Low Supply is the Key Constraint: Advertised listings remain extremely tight, tracking 36% below the five-year average, which continues to put upward pressure on prices despite affordability challenges.

While Perth continues to dominate the headlines, Adelaide is quietly, but powerfully, reinforcing its strong market position. According to the latest data from Cotality, the South Australian housing market showed substantial acceleration in October, confirming its resilience and high demand.

The national home value growth accelerated to 1.1%, and Adelaide played a major role in that uplift. Let's break down the key findings and figures for the South Australian capital.

Adelaide's Growth Engine: 1.4% in a Month

Adelaide home values rose by 1.4% in October. This marks a substantial lift from the 1.0% growth recorded in September and is the city's largest monthly gain since July of last year. In dollar terms, Adelaide's median dwelling value increased by $11,760 over the past month. Over the past year, the total rise stands at an impressive 6.7%, equating to almost $55,000.

Growth Driven by Affordability

The rise in home values is broad-based across Adelaide, but the strongest increases are being driven by the more affordable segments of the market. This trend highlights how strong demand is being concentrated where homes are still relatively accessible, likely supported by investment activity and first home buyer schemes.

Source: Cotality, November 2025

Supply Shortage Sustains Upward Pressure

Note: Like Perth, Adelaide’s market dynamic is fundamentally defined by a severe lack of supply.

Low listing numbers continue to exert upward pressure on home prices, even as housing affordability becomes increasingly stretched:

• Listing Levels: Advertised listings are tracking a tight 36% below the long-term average for this time of the year.
• New Construction: Newly built supply remains insufficient, with dwelling commencements and completions significantly below the decade averages due to construction costs.

Outlook: Headwinds and Market Stability

While the demand/supply imbalance is powerful, the market must navigate several factors:

• Interest Rates: Following a Q3 inflation shock, economists are no longer forecasting further rate cuts in 2025. With the cutting cycle potentially concluding, a material boost to borrowing capacity from here is unlikely.
• Affordability & Sentiment: Stretched housing affordability and stubbornly low consumer sentiment, driven by cost-of-living pressures, remain downside risks that could dampen buyer enthusiasm.
• Investor Credit: Housing credit for investors is accelerating at the fastest pace since mid-2015. A rapid acceleration could prompt regulators to introduce tighter lending policies for investors, potentially denting overall demand.

However, given the resilience of home sales and the ongoing tightness in listing numbers, the imbalance supporting Adelaide’s value growth is expected to persist for the time being.

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