Adelaide Real Estate Market & House Prices

There is no doubt that Adelaide is a great place to invest in property. The cost of living is relatively low, and the city has a strong economy with a diverse range of industries. Furthermore, the population of Adelaide is growing, which is good news for local property market.

There are several great suburbs in Adelaide where you can invest in property. These suburbs offer a great mix of affordability and convenience, and they are all located close to the city centre.

If you are looking for an investment property in Adelaide, it is important to do your research. Understand what the current market is like, and be sure to assess the property market for capital growth.

It is also important to think about your long-term plans for the property. Will you be using it as a rental property, or do you plan to eventually sell it?

Not all areas in Adelaide are equal. There are real estate markets within the broader market.

Adelaide Economy

Adelaide is the capital of South Australia and is the fifth largest city in the country. A major transportation and commercial hub, Adelaide has a population of over 1.3 million people.

Adelaide is one of the most economically diverse cities in Australia. The city’s economy is based around manufacturing, defence, information technology, biotechnology, tourism and retail trade.

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The manufacturing sector is the largest contributor to Adelaide’s economy, accounting for a significant portion of the GDP. The defence sector is also a major contributor to the city’s economy, employing thousands of people and generating billions of dollars in revenue.

The retail trade sector is also a major contributor to Adelaide’s economy. The city is home to a number of major retail outlets, including Westfield Marion, Rundle Mall and the Adelaide Central Market. The retail trade sector is a key part of Adelaide’s economy and is expected to grow further in the coming years.

Overall, Adelaide’s economy is performing well, with steady growth in key sectors. The city is an attractive destination for businesses and investors, and is poised for strong growth in the years ahead.

Adelaide Real Estate Market

The city’s strong economy, affordable prices and excellent lifestyle amenities are attracting more and more people to move to Adelaide. This is driving strong demand for property in the city, with properties selling quickly and prices continuing to rise.

The current property market conditions are being driven by a number of factors, including strong population growth, low interest rates and the increasing number of people moving to Adelaide from other states.

Adelaide is also a very affordable city to live in, with the average house price being 5.5 times the annual median household income, compared to 8.4 times the annual median household income in Sydney. This makes Adelaide an attractive option for people who are looking to purchase their first home.

There are a number of areas in Adelaide that are seeing particularly strong demand. Explore YoY and Gross Yield metrics in the table below to see top performing LGAs in the city.

The capital growth heatmap below visualises yearly house price changes in Adelaide. The heatmap is shaded from red (indicating lower growth) to green (indicating higher growth), with shades of yellow indicating moderate growth.



We start with a snapshot of the Adelaide market that provides an overview of key real estate metrics. The data in this snapshot illustrates typical price, median rent and gross yield metrics for the territory.

Use the Houses/Units toggle buttons below to view the market snapshot for different property types in Adelaide.

Buy 

2BR

3BR

4BR

5BR

Typical Price for houses in the state or territory. Percent changes indicate Year on Year growth or decline in house values. House prices are calculated by averaging Typical Price of all suburbs in the state or territory. Typical Price is a more accurate metric than Median Price.

Rent 

2BR

3BR

4BR

5BR

Median Weekly Rent for houses in the state or territory. Percent changes indicate Year on Year growth or decline in rental prices. Calculated via median value formula applied to rental prices from online listings.

Yield 

2BR

3BR

4BR

5BR

Yearly Gross Yield for houses in the state or territory. Calculated by multiplying the Median Rent by 52 and dividing the resulting value by Typical Price. Percent changes indicate Year on Year growth or decline in Gross Yield for houses.

Buy 

1BR

2BR

3BR

Typical Price for units in the state or territory. Percent changes indicate Year on Year growth or decline in unit values. Council area house prices are calculated by averaging Typical Price of all suburbs in the state or territory. Typical Price is a more accurate metric than Median Price.

Rent 

1BR

2BR

3BR

Median Weekly Rent for units in the state or territory. Percent changes indicate Year on Year growth or decline in rental prices. Calculated via median value formula applied to rental prices from online listings.

Yield 

1BR

2BR

3BR

Yearly Gross Yield for units in the state or territory. Calculated by multiplying the Median Rent by 52 and dividing the resulting value by Typical Price. Percent changes indicate Year on Year growth or decline in Gross Yield for units.

You are able to drill down to LGA-level data and charts which visualise these 3 key metrics as well as other important indicators in the table that follows.

Enable additional columns in the table by clicking on the buttons underneath it. Toggle between LGA and Suburb views in the table’s navigation bar. The data in the table represents key real estate metrics as of the current quarter and is updated on a monthly basis i.e. 3 times per quarter.

Clicking on an LGA or Suburb links in the table will take you to the relevant LGA page where you can drill-down to the next level of data.

Adelaide House Prices

The Adelaide property market is on the rise with house prices increasing steadily for the past several years. And it’s no surprise, because Adelaide’s affordable housing and stable prices are attracting increasing numbers of interstate and international buyers.

The rise in house prices is being driven by strong demand from buyers, with the number of house sales in Adelaide increasing consecutively over the years.

If you’re thinking of buying a property in Adelaide, it’s important to do your research and to be aware of the current market conditions.

The typical house price in 2019 Q3 was $631,000 and then steeply increased to the all time high of $846,000 in 2022 Q1.

Adelaide units saw a continuous steady increase without notable troughs or peaks.

The interactive chart below shows typical price for both houses and units as well as the sales volume per quarter. Toggle additional views of prices per number of bedrooms by clicking on BR2, BR3 etc underneath the graph. You can also drill down to LGA charts using the dropdown in the chart navigation bar.

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The Adelaide market is becoming more diverse, with more inner-city apartments being developed. This is particularly appealing to young professionals who are looking for convenient and affordable accommodation close to the city.

Generally speaking, the Adelaide property market is more balanced in terms of demand and supply than other capital cities. However the scale is beginning to tip towards increased demand with limited properties available for sale and rent.

Adelaide Rental Prices

Adelaide house rent prices are on the rise, as more and more people are looking for a place to live in the city. The median rent for a house in Adelaide is now $462 per week. This is the highest rent price that Adelaide has ever seen, and it is likely to continue to rise in the years to come.

The rise in prices is due to a number of factors, including population growth, a lack of available properties and an increasing number of people who are choosing to rent rather than buy.

If you’re looking for a rental property in Adelaide, it’s a good idea to start your search early. The market is competitive and there are often more people looking for properties than there are properties available. It’s also important to be aware of the rental prices in different areas, as they can vary significantly.

Rent prices for units follow the same patterns as houses, plateauing at around $400PW for the past several years after

Use the interactive chart below to explore the Adelaide rental prices in detail.

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You’ll find plenty of choice on the rental market. The city is home to a wide variety of properties, from apartments and townhouses to houses and villas. You can also find a range of properties to rent in popular inner-city suburbs such as Glenelg, Norwood, Unley, and Hyde Park.

The good news is that there are still some affordable LGAs in Adelaide to rent. Explore the chart below to understand where the rental prices are headed in Adelaide LGAs.

Gross Yield on Investment Properties in Adelaide

Adelaide property market has consistently delivered considerable annual gross yields on investment properties when compared to other capital cities in Australia. Notably, Adelaide market has been more resilient than other capital city markets in Australia over the past few years.

Investors can expect to achieve a gross rental yield of above 3% in the Adelaide CBD. The most affordable Adelaide LGAs for investment property are those located on the city’s fringe, with a gross rental yield of as high as 5%.

Gross yield is the percentage of the purchase price that the investor receives in income each year. In Adelaide, gross yields for houses ranges from 2.0% to 4.9% depending on the location. The range for units is much higher at 2.8-8%. Lower priced suburbs typically offer higher yields. However, there are exceptions to this rule.

At a high level, Gross Yield for Adelaide houses reached its’ local peak of 3.7% in 2019 as house prices were more affordable than today. It has been on a downtrend ever since. Explore the chart below to visualise the gross yield trends for Adelaide LGAs in detail.

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Investors considering purchasing an investment property in Adelaide should keep in mind that the return on investment may vary depending on the suburb in which the property is located.

Adelaide Property Type Demand Profile

Adelaide is often described as a “city of churches”, as it has many large, old churches, such as St. Peter’s Cathedral, Adelaide, and the Anglican St. Andrew’s Cathedral. The city has many large parks, such as Adelaide Parklands, including the large River Torrens parklands in the east and the smaller Morialta National Park in the north-east.

Adelaide is known for its well-preserved colonial architecture and its vast array of 19th-century stone houses. But the city is also home to a range of more modern dwelling types, which are popular with residents and visitors alike.

As far as residential property market is concerned, the most in-demand Adelaide real estate are 3 bedroom houses, followed by 4 bedroom houses. The units are dominant in Inner Suburbs, whereas outer LGAs are more urban and have 3 and 4 bedroom house preferences.

Use the chart below to understand which property types have the highest demand in Adelaide real estate market.

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One of the most popular dwelling types in Adelaide is the terrace house. These houses are typically two or three stories high, with a row of houses sharing a common wall. They are often found in inner-city neighborhoods, and are popular for their small size and affordable price tag.

Apartment buildings can be found all over the city, and range in size from tiny studio apartments to large high-rise buildings. Apartments are popular because they are affordable and offer a variety of amenities, such as swimming pools and gyms.

Finally, Adelaide is also home to a number of detached houses. These houses are typically large, and are found in suburban neighbourhoods. They are popular because they offer plenty of space, as well as privacy and security.

Adelaide Buy & Rent Search Index

The top keyword search for real estate in Adelaide, South Australia is “houses for sale” according to Google Trends. This keyword has a popularity score of 100, meaning that it is the most popular keyword for real estate in Adelaide. Other popular keywords for real estate in Adelaide include “apartments for sale”, “property for sale” and “real estate agents”.

The chart below illustrates the trends for “buy” and “rent” online searches in Adelaide. You’ll notice that there are more searches for properties listed for sale than rental properties. The searches peaked towards the end for 2020 and have since returned to average historical levels.

The black lines on the chart highlight the search index, which is calculated by apportioning the LGA “buy” or “rent” searches to the state average.

The overall search index for Adelaide is calculated as an average of all LGA indexes. It has historically hovered between 6.0 and7.0 for houses which is higher than the index in less populated and economically developed areas in the state.

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The data also shows that Adelaide is one of the few cities in Australia where the majority of buyers were looking for houses, rather than units or apartments.

Overall, the search for rental property in Adelaide is quite competitive, with people often having to compete for properties with dozens of other interested parties.

Adelaide Market Growth Rate Cycles

The Adelaide property market is one of the most stable in Australia. It has low levels of volatility and relatively low price fluctuations. Adelaide has also been shown to be less affected by economic downturns than other capital cities.

The Adelaide property market has entered the growth phase in early 2020. The market has been performing well since then, with house prices and rents increasing. The market is expected to continue to grow in the short-term.

The chart below illustrates the year on year changes in Adelaide property prices. We can see that the Adelaide housing market was in decline in 2019, with house prices in some LGAs dropping by 2%.

Interestingly, Adelaide don’t exhibit pronounced cyclical growth, with majority of LGAs growing at the same rate year on year. Onkaparinga is a notable exception achieving a 9% growth for units in 2021.

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Confidence: High, Medium, Low

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The city’s property market is one that has seen little movement over the years. With a few ups and downs, it has shown steady and consistent growth. Having said that, just like any other city, there are different cycles that the market goes through. If you know what phase of the cycle a particular LGA is in, you can make a more informed decision about when to buy and sell.

Ratio of Renters to Owners in Adelaide Property Markets

The importance of having more owners than renters in a property market is that it gives people a sense of stability. Owners are incentivised to maintain their property and contribute to the community, increasing the appeal of the neighbourhood as a whole.

The ratio of renters to owners in Adelaide is slowly but surely shifting in favour of renters. In the early 2000s, the percentage of renters in Adelaide was around 20%. However, this number has increased to 30% in recent years. This is primarily due to the increasing cost of Adelaide real estate, which has made it somewhat more difficult for young people and families to purchase a home.

The number of renters in Adelaide inner suburbs is lower than that seen in other capital cities.

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When the majority of people in a community are renters, they are less likely to invest in the community. This is because they are not likely to be there for the long run.

As a rule of thumb, there should be no more than 45% renters in an area for it to be considered to have a good investment potential.

Adelaide is a city that is well known for its affordability, with a good ratio of owners to renters. It is estimated that around 70% of the population in Adelaide own their own home, while the remaining 30% rent. This is a much higher ratio of owners to renters than in other Australian capital cities, such as Sydney and Melbourne.

There are a number of reasons for this, including the fact that Adelaide is a more affordable city to live in, with lower property prices and rents. Additionally, the city has a good job market, with a range of jobs available in both the private and public sectors. This means that more people can afford to buy a home, even if their income is not particularly high.

Adelaide also has a number of good quality, affordable suburbs, which are ideal for young families and first time buyers. These suburbs include Salisbury, Elizabeth and Davoren Park, all of which have a good mix of homes that are affordable for both owners and renters.

Whilst Adelaide is a great city for home owners, it is also a great city for renters. There are a number of good quality, affordable rental properties available in the city, and the rental market is thriving. Adelaide is also a great city for students, with a number of universities located in the city. Students can find a range of good quality, affordable rental properties to live in, making it a great place to study.

Overall, Adelaide is a great city for both home owners and renters. The city has a good job market, a range of affordable suburbs and a thriving rental market.

Ratio of Units to Houses in Adelaide Property Markets

The ratio of units  to houses in Adelaide has been steadily increasing in recent years. This trend is likely to continue, as more and more people are choosing to live in apartments.

There are a number of reasons for this trend. Firstly, apartments are often more affordable than houses. They also require less maintenance, which is appealing to busy people. Additionally, apartments are often in prime locations, close to shops and restaurants.

The ratio of units to houses in Adelaide is around 25:75, but this is likely to change over time. If you’re thinking of investing in the Adelaide property market, it’s important to keep this trend in mind and consider whether an apartment or a house is the right investment for you.

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While some people are opposed to the increasing number of apartments, there is no doubt that they are becoming an increasingly important part of the city’s landscape. They offer a more affordable and convenient option for people who want to live in the city.

Adelaide Property Market Socio-Economics

Adelaide is the fifth most populous city in Australia, and is home to a wide range of people from a variety of socio-economic backgrounds.

Adelaide’s median household income is higher than the national median. However, when compared to other capital cities, Adelaide’s median household income is lower than Melbourne’s and Sydney’s.

Adelaide also has a higher rate of unemployment than the national average.

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Despite these challenges, Adelaide is a city with a great deal of opportunity. There are a number of universities and other institutions of learning, as well as a strong economy and a range of cultural and recreational opportunities.

Adelaide has a high level of educational attainment. More Adelaide residents aged 15 years or older have a bachelor’s degree or higher, compared with the national average.

Overall, Adelaide is a prosperous city with a diverse population. The unemployment rate is lower than the national average, and the median household income is higher than the national median

However, there is a large disparity in income between the richest and poorest households. The richest 20% of households earn more than six times as much as the poorest 20% of households.

Adelaide is a great place to invest in property, as the city is expected to experience continued growth in the future. However, it’s important to do your research before buying a property, as not all areas in Adelaide are experiencing the same level of growth. It’s also important to be aware of the current market conditions and make sure you’re buying at a good price.

People from low socio-economic status areas, on the other hand, generally have less access to these things. They are also more likely to be living in poverty, be unemployed, and have poor health outcomes.

More About Adelaide Property Market

What infrastructure projects are currently planned for Adelaide?


There are a number of infrastructure projects running or planned in Adelaide. Some of these projects include the Torrens Road to River Torrens project, the upgrade of the Adelaide Oval, and the extension of the tram network.

You can find out more about current and planned projects on SA government website.

1 thought on “Adelaide Property Market Forecasts”

  1. The Ever-Consistent Adelaide Market Set to Grow

    Adelaide has long been considered one of the most steady markets in the country. While Adelaide house prices might never really boom as we see in Sydney or Melbourne, they also don’t bust – which makes the city a very enticing proposition for investors looking for steady growth opportunities.

    In fact, according to the HtAG forecasts, the Adelaide market could see its median house price grow from where it currently sits at $555,000 to $567,000 by Q1 2022. As we can see from the history of median house prices in Adelaide, property has been a very steady investment and it appears that is set to continue going forward.

    Adelaide – Median House Price

    Based on the chart above that tracks the Adelaide median house price, there have not been any major price corrections in more than a decade. During that same period of time, other markets such as Sydney and Melbourne, grew sharply from 2014-2017, before falling away and now stagnating. Adelaide has seen consistent year on year growth and overall, is arguably one of the most robust markets in the country.

    Growth Rate Cycle – Adelaide Council Areas (LGAs)

    That said, like all markets, there are multiple smaller markets within the city and as we’ll see it is possible to find some very strong performing suburbs, that on the surface have limited downside risk thanks to a very stable city-wide housing market. While 2020 is a year that has seen considerable headwinds, those have not translated into volatility in the Adelaide property market. In fact, all the LGAs within and surrounding Adelaide have seen levels of growth that range between -1% and +5%.

    As has been the case across the country, a number of suburbs have performed well, while the inner city CBD markets have been marginally weaker. However, when we break down the last 12 months to a suburb level, we can see that there have been some incredibly strong performers.

    Gawler 5118 +17.03%

    Gawler has not only been one of the top-performing suburbs in the state and over the last 12 months, but it is also one of the best performed in the country. The median house price has risen by 17.03% to $414,000 with medium confidence. However, as we can see prices have been volatile and this can sometimes be a reflection of the total number of sales that have taken place – which was 5 in this case. It’s a similar story with the current growth cycle where we can see that prices fell away post-2017, before rebounding strongly. The analysis suggests that house prices in Gawler are currently at their peak. The data is assessed as medium confidence due to the low number of sales in the suburb. To access the latest HtAG forecasts with high confidence, subscribe on the Professional Plan.

    Sefton Park 5083 +11.88%

    Sefton Park is another one of the top-performing suburbs in Adelaide and over the last 12 months, the median house price has risen by 11.88% to $716,000 with medium confidence. While the median house price has seen dips in 2016 and 2018, the trend has generally always been higher and any falls have been opportunities to buy. In terms of the growth rate cycle, Sefton Park is assessed as being at its peak with medium confidence and will fall from current levels, but remain positive.

    Clarence Park 5083 +10.55%

    Clarence Park is another higher priced suburb in Adelaide and over the last 12 months, the median house price has risen by 10.55% to $808,000 with medium confidence, based on 5 sales. As we can see on the chart, the median house price has seen consistent growth over many years with only small falls, however, these are exacerbated by lower sales volumes. In terms of the growth cycle, Clarence Park is also at the peak of its cycle and will likely slow down in the coming 12 months according to HtAG forecasts, with a medium level of confidence. To see suburbs with strong growth potential with high confidence, subscribe on the Professional Plan.

    Adelaide’s Next Growth Suburbs

    As we’ve seen, despite the fact that Adelaide’s market is very consistent, there are still many suburbs that represent strong buying opportunities. There are currently a number of suburbs that are expected to see double-digit growth over the next two years according to HtAG forecasts.

    Maslin Beach 5170 +15.97% Forecast Growth

    Maslin Beach looks like it is getting set for a strong 24 months, with growth of 15.97% predicted with medium confidence according to HtAG forecasts, which would take the median price to $589,000. Maslin Beach has been a strong consistent suburb for a long time and it appears to be on the cusp of another growth cycle. Maslin Beach appears to be a rising market as assessed by HtAG and could see double-digit growth in 2021.

    Chandlers Hill 5159 +12.69% Forecast Growth

    Chandlers Hill has had a poor 12 months, however, that appears set to change, with growth predicted of 12.69% with medium confidence according to HtAG forecasts for the next 24 months. Chandlers Hill is assessed as being at the bottom of the market and the forecast growth could see the median price grow to $764,000 by Q3 2022.

    Norwood 5067 +9.91% Forecast Growth

    Norwood is coming off a strong 12 months and it looks like that growth could continue into next year with HtAG predicting the median house price to increase by 9.91% to $922,000 with medium confidence over the next 24 months. Over the past 12 months, Norwood has grown by 4.43% based on 13 sales and appears on track for a strong period of performance. Norwood has long been a very steady performer which mirrors the broader consistency in the Adelaide market. HtAG has assessed the Norwood market as rising with medium confidence, which indicates it could be a good time to look a little close at houses in Norwood. Norwood has barely had a year where prices grew by less than 3% in the last decade.

    Conclusion

    As we’ve seen, Adelaide is a market that while on the surface appears slow and steady, when you dig a little deeper, presents a host of opportunities for outperformance. While many investors are concerned with world events and the state of the economy, the Adelaide housing market continues to be a good option for those seeking safety and consistent price appreciation.

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