South Australia Market Update
Mid-sized capital cities continue to outpace their larger counterparts, and Adelaide is no exception. By the end of 2024, Adelaide had recorded the second fastest annual growth rate of all Australian capital cities at 13.1%. Additionally, it achieved the highest quarterly growth of any capital city with an increase of 2.1%.
CoreLogic Home Value Index
So, what continues to drive the Adelaide market forward? And is there still value in the Adelaide market?
Why does Adelaide continue to outperform other capital cities?
There are several contributing factors to Adelaide’s high performance in the current market and 8 of the leading reasons are below
- Strong Capital Growth – According to CoreLogic, national home values experienced their first decline in nearly two years, down by 0.1%. However, Adelaide outperformed all other capital cities in the December quarter, with dwelling values rising by 2.1%. Over the past 12 months, Adelaide has seen impressive growth of 13.1%, slightly down from its peak rolling annual change of 14.6% in August. Given the market’s challenges—high interest rates and cost-of-living pressures—these results are a strong indication of Adelaide’s resilience and appeal to investors.
- Low Supply Levels – A key factor driving growth in Adelaide is the ongoing low level of advertised stock. CoreLogic reports that, by mid-December, stock levels were 34% below the previous five-year average. We’re 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.
- Sale Volumes Despite the tight supply, the volume of sales has increased by 17.4% in the 12 months leading up to November, highlighting strong demand in the Adelaide market. While private sales campaigns remain the preferred method for selling properties in Adelaide, there has been a noticeable rise in auction campaigns. Auction clearance rates have softened slightly in the last quarter of 2024, suggesting the market might be cooling a little, but demand is still very much present.
- Affordability – With a median dwelling value surpassing $800,000, it’s becoming harder to champion Adelaide’s affordability. However, for our investor clients, the average purchase price in 2024 has been $653,362—well below the median value—making Adelaide still an attractive option.
- 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. In quarter four of 2024 we purchased investment properties ranging from $650,000 to $893,000, However, our lowest purchase price was $444,500 in Quarter 2. For homeowners, we secured properties between $870,000 and $1.7 million, with the lowest purchase price for 2024 at $397,500. So, while the median price continues to rise, there are still opportunities for a range of buyer types and budgets across Adelaide.
- Low Vacancy Rates- While low vacancy rates are challenging for tenants, they are a boon for investors and landlords. As of the end of November, Adelaide had the second lowest vacancy rate of all Australian capital cities, sitting at just 0.7%. 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.
- High Rental Yields – The knock-on effect of low vacancy rates is that weekly rents have been on the rise. In the last 12 months, according to SQM Research Adelaide rents have increased by 6.2% for houses and 15.7% for units. And that is off the back of substantial growth that has already occured in the last 3 years. Our investor clients are achieving an average rental yield of 4.6% so far this year, which is above Australia’s (3.7%) and Adelaide’s (3.7%) gross rental yields reported by CoreLogic. The advantage of higher rental yields is the reduction of monthly outgoings for investors and potentially a positively geared or cashflow property. Nationally rental growth has started to slow down and according to CoreLogic this is due to a reduction in net overseas migration and affordability pressures on renters.
- Cash Rich Buyers – Interstate buyers continue to invest heavily in Adelaide, whether they’re relocating or entering the market as investors. Those who’ve sold properties in more expensive capital cities often have the financial capacity to make higher offers, which is driving prices up for desirable properties
- 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
Nationally, CoreLogic reported a slight decline of 0.1% in home values in December 2024, the first monthly drop since February 2023. High interest rates, cost-of-living pressures, and an increase in stock levels are contributing to a cooling effect on the broader market.
However, Adelaide’s low stock levels, strong affordability, and solid rental markets have kept buyer demand high. We have seen a slight dip in the growth rate, suggesting we may have passed the peak.
At this point, it’s hard to predict exactly what will be in high demand and what will slow down, but we’re seeing continued interest in high-quality homes and long-term development opportunities in desirable lifestyle locations.
Interstate investors are still showing interest in Adelaide, particularly those seeking low-maintenance, near-new properties offering good depreciation benefits and “set and forget” investment opportunities.
We expect to see new properties hit the market in mid-January, and while demand is likely to remain strong, some buyers may be holding out for that first-interest rate drop, which is predicted to occur as early as February, though it may be closer to mid-year.
We don’t anticipate a significant influx of new property listings, so supply will remain below demand, keeping the market buoyant.
We expect the start of the year will be busy for us, helping clients who missed out on properties during the Christmas period and onboarding new clients.
Suburb Review: Devon Park
With a population of around 1,000, Devon Park is often overlooked. However, this quiet, inner-northern suburb is just 6 kilometres from the CBD, offering unparalleled convenience and access to everything the city has to offer.
Despite its prime location, Devon Park remains an affordable option for those seeking proximity to the heart of Adelaide. As property prices continue to rise, this is one of the last city-fringe suburbs where you can still purchase a property for under $1,000,000, all while enjoying the benefits of living close to North Adelaide and the CBD.
The suburb is well-served by public transport, including a local train station, and essential amenities such as schools, shops, and leafy parks are just a short walk away. Devon Park mainly features traditional homes on standard-sized blocks, with a few newer townhouses mixed in.
With a median house price of $800,000, Devon Park offers excellent value for an inner-city location, especially when you consider its proximity to more expensive areas. For example, North Adelaide, just 2 kilometres away, has a median house price of $1.3 million, while the neighbouring suburb of Prospect, to the east, boasts a median of $1.25 million.
This suburb is unlikely to stay under the radar for long.
Purchase Example
3 Bed | 1 Bath | 5 Cars | 819m2 | Sold for $1,305,000
Perfect for families and entertainers this classic home on 819m2 has been tastefully updated. Ideally located just 5kms from the CBD. A 5-minute walk to the local train station which is quick 9-minute train ride to Adelaide’s main train station. The vibrant cafes and shops of Prospect Road are just a 15-minute walk away, and nearby shopping centres are minutes away for added convenience.
View original listing here.

by Katherine Skinner
Director
Katherine Skinner began her career in property over a decade ago in Melbourne working in Buyer’s Advocacy and Property Management. Returning to her hometown of Adelaide in 2009, Katherine quickly established a reputation as an exceptionally thorough and diligent practitioner, providing outstanding customer service coupled with a calm and positive attitude while working with some of Adelaide’s most highly regarded agencies. Katherine has been named the REISA Buyer’s Agent of 4 times, is a 2-time REIA National Awards Finalist, and a Women in Real Estate Finalist.
0438 729 631 or email Katherine