Q4 2025 Adelaide Property Market Report

South Australia Market Update

Well, it was a scramble towards the end of the year with the rush to buy properties before the holiday break, but we got there.

We have had a great year helping our clients. Whether FHBs, downsizers, relocators from interstate and overseas and helping investor buy their first and their fourth properties and all in a critically undersupplied market.

Supply just does not meet demand in Adelaide, and it hasn’t for the last 24 months or more. When a family home in a good location or a A-grade investment property hits the market, it is snapped up, sometimes in only a couple of days!

And if you are chasing highly contested properties, you need to be ready to act, or you will miss out.

Predominantly fueled by this shortage Adelaide’s median dwelling value continues to rise and remain at all-time highs of $908,000 which places us ahead of Melbourne’s median of $854,000.

Our month on month growth increased slightly from Q3 to Q4, from 0.5% to 0.8%. And our annual growth jumped back to up to double digits with 12.8%:

Quarter 4 is the busy run until Christmas and the Summer holidays where the market slows, and new listings are very limited. We were out buying properties every weekend and secured our last two properties for the year on the 20th of December.

So let’s have a look at what other factors continue to drive the market in Adelaide

1. Low Supply Levels One of the key factors driving growth in Adelaide is the ongoing low supply of available properties. And two key factors attributing to this low supply are population growth due to migration and limited new housing construction. According to Cotality, Novembers listings were tracking 9% lower than the same time last year and 26% lower than the 5-year average. Demand continues to absorb all the “good” stock, leaving little on the market after 30 days. This means buyers need to be prepared to act quickly. Have your finances in place and without over playing your hand let real estate agents know when you are interested in a property.
2. Strong Capital Growth Adelaide has experienced impressive double digit capital growth over the past 12 months, with 12.8% (8.6% previous quarter) growth across all dwellings, according to PropTrack. We continue to outpace the capital city average growth rate which for December was 8.5%. This steady and consistent growth provides confidence to prospective buyers, whether local or from interstate, and highlights the market’s resilience.
3. Interest Rate Cuts The year started with much talk about impending interest rate cuts and the first one came quickly at the initial RBA meeting of the year. Two more followed in May and August. However, sticky inflation has slowed further rate cuts, and all three months of Quarter 4 interest rates were held. However, the drop from 4.35% at the start of the year to 3.6% boosted consumer confidence and increased borrowing capacity for many prospective buyers.
4. Properties for every budgetThe Adelaide property market is more diverse than many people realise. In 2025 we purchased properties across 71 different suburbs. This quarter alone, we’ve secured properties across 20 different suburbs, with prices ranging from $600,000 to $2.6 million. While median prices continue to climb, opportunities still exist for a wide range of buyers and budgets. Whether you’re a first-home buyer, upsizing, or investing, Adelaide offers something for everyone.
5. Affordability With Adelaide’s median dwelling value now at $908,000, it’s becoming harder to champion the city as a purely “affordable” market. However, for our investor clients this quarter, we have secured properties ranging from $486,600 to $1,700,000. And the vast majority of our investment purchases are in the $600,000 to $750,000. Which considering these properties are normally smaller houses or townhouses on a small parcel of land these properties represent excellent value. Quality investments like this still exist. You just need to know where to look.
6. Low Vacancy Rates While low vacancy rates can be tough for tenants, they’re a major advantage for landlords and investors. A healthy vacancy rate is around 3%, yet the national average according to Cotality is currently 1.3%, and Adelaide’s is even lower at 1.1%. Adelaide has long faced an undersupply of rental properties, and demand remains strong. At many of our rental open homes, we receive multiple high-quality applications after just one inspection, making it easier for landlords to find reliable tenants and reduce vacancy downtime.
7. High Rental Yields Adelaide’s low vacancy rates are continuing to push rental prices upward. Over the past 12 months, rents have increased by 3.4% which is a reflection of strong tenant demand and limited supply. Our investor clients achieved an average rental yield of 4.13% for the quarter, with the highest yield reaching 4.85%.  This is well above both the combined capitals average (3.4%) and Adelaide’s average(3.5%) as reported by Cotality. Higher yields help investors offset monthly holding costs and can even lead to positively geared or cashflow-positive outcomes. A key consideration in today’s costs of living.
8. Unbeatable Lifestyle Adelaide’s reputation as a premium lifestyle destination continues to grow. Whether you want to live by the sea, in the hills, or close to the CBD, Adelaide offers lifestyle options to suit all preferences. From pristine white beaches to world-class wineries, many of South Australia’s best features are just 20 minutes from the city. Combined with our world-famous festivals, a strong sporting culture, and outstanding food and wine, it’s easy to see why more people are choosing to call Adelaide home.

Looking forward 

Demand we will remain strong and undersupply will keep the local market buoyant.

We expect to see new properties hit the market in mid-January, though we will be looking out for pre-listings and off-market before this.

We have clients that joined with us in the later part of 2025 and we are already looking for properties for them, and in fact made our first purchase for 2026 on the 12th of January.

We will be keenly watching the RBA’s announcement and inflation with most economists now predicting that interest rates will be held for quite a while or maybe a small increased passed along.

As always, preparation, local knowledge and swift action are key in this tight market. We’re here to help our clients make confident, informed decisions through to the end of the year and beyond.

Suburb Review: Happy Valley

Happy Valley is a well established and highly liveable suburb located approximately 20 kilometres south of the Adelaide CBD. Set near the foothills and surrounded by natural greenery, including the popular Happy Valley Reservoir, the suburb offers a relaxed lifestyle with a strong sense of community. Its balance of convenience, space and affordability makes it an attractive option for families, professionals and long-term buyers.

1. Location & Accessibility

Happy Valley offers an excellent balance between suburban tranquillity and city access. Located around a 20-minute drive from the CBD, the suburb suits commuters who want to enjoy a quieter lifestyle without being disconnected from employment hubs. Easy access to the Southern Expressway improves travel times north and south, while public bus services connect residents to surrounding suburbs and key transport interchanges. Its location also places residents close to beaches, the Adelaide Hills and popular wine regions, adding to its overall lifestyle appeal.

2. Shops and Amenities

The suburb provides convenient access to everyday shopping and essential services. Happy Valley Shopping Centre services local needs with supermarkets, cafes and specialty stores, while larger retail and entertainment options are available at nearby centres such as Westfield Marion and Colonnades Shopping Centre. Residents also benefit from nearby medical centres, gyms, childcare services and community facilities, ensuring most needs are met within a short drive.

3. Schools & Education

Happy Valley is particularly appealing to families due to its access to education options. Happy Valley Primary School serves the local community and is supported by a range of additional public and private schools in neighbouring suburbs. Early learning centres, kindergartens and childcare facilities are also easily accessible, making the area practical for growing families and contributing to the suburb’s long-term desirability.

4. Parklands and Playgrounds

Green spaces are a defining feature of Happy Valley and contribute significantly to its quality of life.

The Happy Valley Reservoir and surrounding reserve provide scenic walking and cycling trails, picnic areas and open spaces for recreation. Throughout the suburb, parks and playgrounds cater to families and children, while tree lined streets and natural surroundings create a peaceful and spacious environment that is increasingly sought after by homebuyers.

5. Properties and Prices

Happy Valley offers a broad range of housing options that appeal to both owner occupiers and investors. The suburb is predominantly made up of detached family homes on generous allotments, many of which enjoy elevated views or established gardens.

Property prices remain competitive compared to inner southern suburbs, while steady demand reflects the area’s strong lifestyle appeal, family friendliness and potential for long term growth.

Happy Valley stands out as a well-rounded suburb offering lifestyle, convenience and value. With strong transport links, quality schools, abundant green space and accessible amenities, it presents an excellent opportunity for buyers seeking a peaceful yet connected place to call home in Adelaide’s southern suburbs.

Purchase Example

3 Bed | 2 Bath | 2 Cars |  Sold for $941,000

Three bedroom, 2 bathroom single storey brick home on 770m2 positioned in a family friendly pocket. Close to shops, schools, sporting facilities, walking trails and Happy Valley reserve.

View original listing here.