Adelaide’s median combined dwelling value has climbed to a record high and looks set to eclipse $900,000 within weeks, as an expert predicted values would continue to rise through summer and into the new year, bolstered by this year’s series of interest rate cuts, population inflows, investor activity and the expanded home guarantee scheme.
REA Group senior economist Eleanor Creagh made the prediction as PropTrack’s December Home Price Index, released today, revealed Adelaide combined dwelling prices climbed 0.9 per cent over the past month – the highest in the nation – to an $898,000 median.
This was almost double the national capital city average monthly growth of 0.48 per cent.
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The growth rate in regional SA, which has been the nation’s standout performer in recent years, has slowed and sat at 0.42 per cent for the month – below the national regional average.
REA Group senior economist and report author Eleanor Creagh, said low stock values, particularly the constrained rollout of new housing, had swung the market heavily in sellers’ favour and she didn’t see that changing any time soon.
“I think this year’s series of interest rate cuts, population inflows, investor activity and the expanded home guarantee scheme will continue to bolster demand along with upgrade activity,” she said.
“Meanwhile, stock or market has been pretty tight this year, despite having seen an uplift over the past month with the spring selling surge.
“The delivery of new housing remains constrained, so conditions have been tilted towards sellers and I’d say that’s going to remain the case.
“Broadly, it looks like further price gains into summer, although the extended pause on interest rates and APRA’s cap on high debt to income lending is probably going to temper momentum into the first half of 2026 so we could see the pace of growth easing off slightly.”
REA Group senior economist Eleanor Creagh
Adelaide’s house price continues its climb towards $1m, again hitting a new high – up 0.73 per cent for the month to $974,000 – while metropolitan units have increased 1.84 per cent over the past month to $675,000.
Regionally, the median house price sits at $491,000, and the median unit price $451,000.
Over the past five years, metropolitan Adelaide’s combined dwelling price has increased by 93 per cent, while regional homes have increased by 96.05 per cent.
Ms Creagh said Adelaide’s housing market has had an exceptional run over that period.
“It’s one of the strongest performing markets in the country, if you look at growth over the past five years, and there’s a decent amount of momentum embedded into that trend of rising prices,” she said.
“Stock on market has been fairly tight.
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“We’ve seen that home buying demand has remained buoyant, and the delivery of new housing hasn’t kept up with demand.
“As a result, we’ve seen that prices in Adelaide have continued to grow, although we have seen the pace of price growth slowing a little from this time last year.
“Very stretched affordability is becoming a bit of a headwind on the pace of growth, but prices are still growing at a brisk pace.
“Last year, prices were up 14 per cent in the year to November.
“Currently, they’re up 12 per cent in the year to November, so there’s been a slight slowing in annual home price growth.”
Adelaide home values are up. Picture: Supplied by Knight Frank
According to the report, home values in Adelaide’s south have increased over the past 12 months by 12.91 per cent to a $922,000 median, while dwellings in Adelaide’s north have increased 12.89 per cent to a median of $784,000.
Ms Creagh said the growth in these areas reflected the State Government’s plan for an extra 30,000 houses.
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“Based on Adelaide’s current urban footprint, it looks like the city is going to become a little broader, but still relatively compact, with most of those extra homes being focused on high density housing and that missing middle (ring) around existing centres and transport,” she said.
“It makes sense to see some of those regions where there is going to be potentially more new housing being delivered, seeing stronger buyer interest with maybe comparative affordability and new build supply bolstering demand.”
Jack O’Leary of JLL. Supplied
JLL SA director of sales and Investment Jack O’Leary said the price gap between houses and units was growing, pushing more buyers were moving toward medium- to high-density housing like townhouses and apartments.
“Affordability pressures are shifting buyer behaviour, but they’re also highlighting the critical role of density in Adelaide’s future,” Mr O’Leary said.
“High construction and labour costs are shaping what can realistically be delivered and this is accelerating the move toward medium- and high-density supply.
“We’re seeing a clear shift toward well-located inner-suburban sites with zoning flexibility and amenity.
“Investors understand that Adelaide’s growth is underpinned by structural demand, not speculation, and competition for quality landholdings is tightening.”
– with Tim McIntye
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