Adelaide Property Market – Prices, Trends, Forecast [January 2025]

Adelaide experienced strong housing market performance in 2024, with an annual dwelling value growth of 13.1%, making it one of the leading capital cities in Australia. The city recorded the highest quarterly growth among the capitals, with a 2.1% rise in values during the December quarter, outpacing Perth and Brisbane. This growth is underpinned by extremely low advertised stock levels, which were 34% below the five-year average, fueling buyer competition.

Adelaide Property Price Growth

The median dwelling value in Adelaide reached $814,430 in December 2024. The market’s annual return was a robust 17.3%, supported by sustained demand and limited supply. Key regions such as Playford (up 18.4%) and Salisbury (up 16.6%) were among the strongest performers, highlighting growth in both affordability-driven and established areas.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st January 2025

Adelaide Property Market Trends

• Low Stock Levels: Adelaide’s housing market benefitted from exceptionally low stock, enhancing price growth.
• Affordability Advantage: The city saw demand shift towards more affordable markets, where growth outpaced premium segments.
• Shift in Rankings: Adelaide emerged as the strongest-performing capital city in Q4 2024, overtaking Perth.

Change in dwelling values over key time periods

Adelaide Property Market Forecast

Adelaide is expected to maintain positive growth momentum into 2025, though at a moderated pace as broader market conditions adjust. Factors influencing the outlook include potential rate cuts, easing affordability constraints, and sustained housing demand in lower-priced segments. However, a potential increase in housing supply or macroprudential policy adjustments could temper growth.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

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Conclusion for Homeowners

Adelaide remains a standout performer in the Australian housing market, driven by low stock levels and strong demand for affordable housing. While growth may decelerate slightly, Adelaide’s affordability and resilience position it favorably for continued strength in 2025.

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