Q2 2025 Adelaide Property Market Report

South Australia Market Update

Each quarter, we seem to be saying the same thing—Adelaide’s dwelling values are at an all-time high. 

While the pace of growth has slowed slightly, Adelaide still recorded the highest annual growth rate of any capital city over the past 12 months, rising by 9.8% according to PropTrack. Over the most recent quarter, dwelling values increased by 1.1% in Adelaide and 3.3% across South Australia’s regional areas according to CoreLogic.

In Q2, we saw the second interest rate cut of the year, with the RBA lowering the cash rate by 0.25% in May to 3.85%. The combination of falling inflation and the May rate cut is providing a welcome boost to the property market. 

Consumer sentiment peaked in March following the February rate cut. And whilst consumer sentiment dipped again in April, we’ve since seen two consecutive months of improvement. 

The winter months are traditionally quieter, with many vendors choosing to hold off listing until spring, when gardens are in bloom and warmer weather encourages more buyer activity. In line with this trend, Adelaide has seen a noticeable decline in new property listings, further tightening supply and supporting price growth. 

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

1. Strong Capital Growth –  While the growth has slowed and is now below double digits, it remains the highest among all capital cities during this period. Given the market’s challenges due to cost-of-living pressures these results strongly show that Adelaide continues to demonstrate resilience. —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. New listing activity remains weak, with new listings in Adelaide down 10% compared to the same period last year. While there was a slight bounce of 2.3% in new listings in June, it is not enough to make up for the reluctance of vendors to list over the past two years.  When high-quality families home or an A-grade investment property hits the market competition is fierce, and buyers need to be prepared to act quickly and negotiate effectively. 
3. Sale Volumes Across the properties in Adelaide are taking slightly longer to sell, with an increase of 2 days from June 2024 to June 2025 (from 30 days to 32 days). Nationally, properties are taking 35 days to sell in the June quarter. Despite the tight supply, the volume of sales has increased by 5.9% over the past 12 months, highlighting strong demand in the Adelaide market.
4. Affordability – With a median dwelling value of $837,000 and a median house value of $907,000, 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 more diverse than many realise. In the last two years alone, we’ve helped clients buy properties in over 130 suburbs. This quarter, we assisted in securing investment properties ranging from $486,500 to $868,000. For homeowners, we’ve secured properties ranging from $450,000 to $1.7 million. So, while the median price continues to rise, opportunities still exist for a wide range of buyers 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. The national vacancy rates sits at 1.3% which is a slight uplift from 1.2% according to SQM Research. However, Adelaide’s vacancy rate remates sub-1 at 0.8%. A healthy vacancy rate is typically around 3%, and Adelaide has been grappling with persistent undersupply for a long time.  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 led to rising rental prices. In the past 12 months, rents in Adelaide have increased by 4.7% – which is a definite slower rate of growth than the double-digit growth rates we received for the previous 12-month period. Our investor clients achieved an average rental yield of 4.32%, with the highest yield reaching 5.2% for the second quarter of 2025. This is above the national average and Adelaide’s reported average by CoreLogic, both of which are 3.7%. Higher rental yields help offset monthly costs for investors, potentially making properties positively geared or cashflow-positive.
8. Cash Rich Buyers – We are still seeing strong relocation numbers to Adelaide, however we don’t offer the same value that we once did. We are seeing clients selling, and in some instances still not having enough to buy what they thought they could here in Adelaide now. Sydney is the only state where someones money goes noticably further these days. Cash rich people we are seeing from overseas however.
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. 

The rate of growth is slowing but with continued low supply we expect A-Grade investment properties and family homes will continue to perform very well. 

The new financial year kicks off in Winter and the school holidays where many agents go away to enjoy the European Summer, will come to an end.  This is usually the first sign of an exciting period where in Spring we see strong stock levels combined with buyer activity as the weather changes.  We have seen increased buyer demand and engagement of clients looking to purchase new homes or investments earlier than usual this year, with everyone ready to go as soon as the right opportunity becomes available. 

Suburb Review: Royal Park

If you’re looking for a peaceful and family-friendly area in Adelaide’s western suburbs, Royal Park could be just what you need. Situated about 11 kilometres northwest of the CBD, this suburb offers the perfect mix of suburban tranquillity and city convenience. With its growing community, ample amenities, and proximity to beaches and the city centre, Royal Park is increasingly becoming a sought-after location for homebuyers, renters, and investors alike. 

Location and Accessibility

Royal Park is ideally located for those who want easy access to both the Adelaide CBD and the coast. The suburb is well-served by public transport, with several bus routes running through the area and close proximity to Albert Park and Seaton Park train stations.  Additionally, Port Road, a major arterial route, provides quick car access to the CBD, as well as to nearby suburbs and the beach.

For those who enjoy weekend trips, the Adelaide Airport is only around 20 minutes by car, and the beaches of Henley and Grange are a short drive away.

Shops and Amenities

Royal Park provides convenient access to everyday essentials and larger shopping precincts. The West Lakes Shopping Centre, just a short drive away, offers a wide variety of retail stores, supermarkets, restaurants, and entertainment options, including a cinema. Closer to home, residents have access to local shops, takeaways, and medical centres. For those who enjoy dining out, there are several cafés and multicultural eateries in and around the area. 

Schools and Education

Royal Park is well-served by a number of educational institutions. Within the suburb itself and nearby are options such as Hendon Primary School, Westport Primary School, and Le Fevre High School. For families seeking private education, schools like Nazareth Catholic College and Our Lady Queen of Peace School are easily accessible. Several childcare centres and early learning services also operate in the area, making it convenient for young families. 

Parklands and Playgrounds

The suburb is home to several well-maintained parks and reserves, such as Cooke Reserve and Royal Reserve, which offer open space for walking, picnics, and play. These areas are popular with families and fitness enthusiasts. In addition, the nearby West Lakes precinct provides beautiful waterfront areas and walking trails for those who enjoy outdoor activities. 

Types of Properties & Prices

When it comes to housing, Royal Park offers a variety of property types to suit different lifestyles and budgets. The suburb features a mix of older homes, modern townhouses, and new developments, making it appealing to first-time buyers, investors, and families looking to upgrade.

Many of the older post-war homes are being updated or replaced, bringing a fresh and modern feel to parts of the suburb. For investors, the demand for rental properties remains strong due to the suburb’s central location and proximity to amenities.

The median house price in Royal Park has risen to $860,000 after 33.33% growth in 12 months. That is still below the Adelaide Median House price.

Royal Park is a suburb that offers a fantastic blend of affordability, location, and lifestyle. Its peaceful, family-friendly environment, coupled with strong transport links and plenty of amenities, makes it a great choice for a wide range of residents. With its close-knit community, green spaces, and growing property market, Royal Park is one of Adelaide’s hidden gems—ideal for families, young professionals, and retirees alike.

If you’re considering making a move to the western suburbs, Royal Park is definitely worth exploring!

Purchase Example

4 Bed | 2 Bath | 2 Cars | | Sold for $1,340,000

A modern architecturally designed home on 630m2. Double lock up garage and entry to rear. Alfresco with zip Trak blinds and electric heating. Hedon Primary School located at your rear. 

View original listing here.