Q1 2025 Adelaide Property Market Report

South Australia Market Update

In Quarter 1 2025 it finally happened.

In February the RBA delivered the much anticipated first interest rate cut since November 2020.  

Whilst only a quarter of a percentage point it is considered the first of a few that will occur throughout 2025 and into 2026. 

In March, CoreLogic reported that Australian property values reached new heights and the second month of growth nationally. Tim Lawless, CoreLogic’s Research directed commented “Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut’s direct influence of a slight improvement in borrowing capacity and mortgage serviceability.” 

Adelaide experienced the second highest quarterly growth (only behind Darwin) for the major capital cities and South Australia recorded the highest quarterly growth for the regions. 

Source: CoreLogic Home Value Index April 1st 2025

On the ground, the quarter started quietly in January. Limited stock options across the entire metropolitan area meant there was very little activity.  From February there were glimpses of positivity for purchasers. A flurry of quality properties hit the market and continued into March.   

While this seemed to indicate a corner had been turned in relation to stock levels, suddenly it all came to a halt and agents started saying there was little in the pipeline.  The sudden halt occurred just as the Federal Election was announced. Only time will tell if this was a coincidence. 

So, as well as a shortage of stock what the key factors driving the Adelaide market now.  

1. Strong Capital Growth – Over the past 12 months, Adelaide has seen 11% growth across all dwelling. Whilst Adelaide’s growth has slowed it is still sold in double digits. In fact, CoreLogic reported that the March rise marks 24 months of consistent capital gains for Adelaide.  Given the market’s challenges—high interest rates and cost-of-living pressures—these results are a strong indication of Adelaide’s resilience.
2. Low Supply Levels – A key factor driving growth in Adelaide is the ongoing low level of advertised stock. By the end of March CoreLogic reported that housing supply is 28% below the previous five-year average. And we are certainly feeling this on the ground. When a high-quality family home or an A-grade investment property hits the market, competition is fierce, and you need to be prepared to act quickly and negotiate effectively.
3. Sale Volumes Despite the tight supply, the volume of sales has increased by 7.6% in the previous 12 months. Highlighting strong demand in the Adelaide market.
4. Affordability – With a median dwelling value of $827,675 and a median house value of $878,621, it’s becoming harder to champion Adelaide’s affordability. However, for our investor clients, the average purchase price in 2024 was $653,362 and for our first quarter of 2025 it is $817,420, we expect our average purchase price for investors to drop as more purchases are made. 
5. Properties for every budget – The Adelaide market is broader than most people realize. In the last two years alone, we’ve helped clients buy properties in over 130 suburbs. This quarter we have bought investment properties from $561,000 to $1.56 million. For homeowners, we have secured properties from $668,000 to $1.41 million. So, while the median price continues to rise, there are still opportunities for a range of buyer types and budgets across Adelaide.
6. Low Vacancy Rates- While low vacancy rates can be challenging for tenants, they are a boon for investors and landlords. Whilst the national vacancy rates sits at 1.3% according to SQM Research at the end of February, Adelaide’s vacancy rate is 0.7% the second lowest of the capital cities. A healthy vacancy rate is typically around 3%, so with vacancies so low, there simply aren’t enough properties for tenants. From our experience with rental inspections, we know that demand is high, and we often only need to open a property once or twice before receiving enough applications to select the right tenant.
7. High Rental Yields – The low vacancy rates have resulted in rising rental prices. In the past 12 months, rents in Adelaide have increased overall by 5.5%. This is a slowing rate of growth from previous results. Our investor clients achieved an average rental yield of 4.45% for the first quarter of 2025. Which is above the National and Adelaide’s average which are currrently both 3.7%, according to CoreLogic. Higher rental yields can help offset monthly costs for investors, potentially making properties positively geared or cashflow-positive.
8. Cash Rich Buyers – Interstate buyers continue to invest heavily in Adelaide, whether they’re relocating or entering the market as investors. Those who are relocating from more expensive cities are always impressed what their money can buy in Adelaide. Whether it be a superior property, a superior location or both!
9. Unbeatable Lifestyle – Adelaide’s reputation as a lifestyle destination is growing rapidly. Whether you want to live near the sea, the hills, or the city there are lifestyle options for everyone. Pristine white beaches and world-class wineries can be reached by car in as little as twenty minutes from the city and we are a city known for its festivals, love of sport and world-class food and wine. 

Looking forward 

Whilst it is predicted there will be further interest rate cuts, it is expected to be quite drawn out with only a few over the next 12 months. However, every rate cut helps improve consumer confidence, reduces variable payments, increases mortgage serviceability and relieves cost of living pressures. 

April has been a little quieter with school holidays, Easter and ANZAC day but we expect activity to pick back up in May. And whilst the rate of growth is slowing, with continued low supply we expect A-Grade investment properties and family homes will continue to perform very well. 

Suburb Review: Prospect

Located just 5 kilometres north of the Adelaide Central Business District (CBD), Prospect offers a perfect blend of urban convenience, cosmopolitan lifestyle and suburban tranquillity. Its proximity to the city makes it ideal for those who want a suburb lifestyle with easy access to work and city amenities.

Location and Accessibility

Prospect’s proximity to the city is one of its key attractions, as well as the bustling Prospect Road precinct complete with cinemas, restaurants, shops and cafes. Being only 10 minutes by car or a short bus ride from the CBD, the suburb is ideal for professionals and city workers who want easy access to their workplaces.

Shops and Amenities

One of the standout features of Prospect is its vibrant shopping precincts. The Prospect Road Precinct which houses a variety of restaurants, cafes, shops and essential services.

Schools and Education

Prospect is home to several primary schools, including Prospect Primary, Rosary Catholic Primary School and Blackfriars Priory School. For those pursuing higher education, the University of South Australia and TAFE South Australia are easily accessible from Prospect, and it offers school zoning for Adelaide High and Adelaide Botanic High Schools.

Parklands and Playgrounds

Plenty of green spaces for the community including Prospect Oval and surrounds, various parks and playground and Broadview Oval, as well as the nearby Linear Park, provide plenty of outdoor activities. These parks are perfect for families, sports, and leisurely walks or bike rides.

Types of Properties & Prices

The suburb offers a mix of charming period homes, including Victorian, Villas and bungalow-style houses, as well as modern townhouses and apartments.

Due to Prospect popularity and proximity to the city you will pay a higher price to secure a house on land. The current median house price is $1.225m and just in the last 12 months the suburb has experienced 17% growth.

Units in this area are also seeing strong capital growth given the lifestyle and convenience they offer for first home buyers as well.

Purchase Example

4 Bed | 2 Bath | 3 Cars | | Sold for $1,560,000

An attractie character home  circa 1922 nestled behind a high fence with 4 bedrooms and 2 bathrooms. This ready to enjoy home is perfectly situated in such a fantastic location that’s only steps away from the areas popular attractions, eateries, shops, parks and sporting grounds are all at your doorstep. Popular private and public schools and within easy reach.

View original listing here.