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Adelaide's property market has been one of Australia's strongest performers, with prices climbing nearly 13% in the past year alone.
The city is now approaching a $1 million median house price, a milestone that seemed distant just a few years ago.
In this constantly updated article, we break down the current housing prices in Adelaide, what's driving them, and where experts think the market is heading.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Adelaide.
Insights
- Adelaide's median house price is sitting just below A$1 million in January 2026, which means the city has doubled in value in roughly seven years.
- Units and apartments in Adelaide have actually outpaced houses over the past 12 months, growing around 14% compared to 12% for detached homes.
- The northern suburbs like Elizabeth and Munno Para West are seeing the fastest growth because buyers are being pushed there by affordability pressures elsewhere.
- Adelaide property prices per square metre now average around A$4,600 for houses, which is still well below Sydney but catching up quickly.
- The RBA has held interest rates steady at 3.60% since August 2025, which has helped stabilize borrowing capacity for Adelaide buyers.
- Forecasters expect Adelaide property prices to grow between 5% and 7% in 2026, a slowdown from the double-digit gains of recent years.
- Townhouses and infill developments near jobs and transit are likely to be the best performers over the next five years as affordability bites harder.
- The South Road upgrade (T2D project) is expected to boost property values in suburbs along the improved transport corridor over the coming years.
- Adelaide's housing supply remains tight, with building approvals and completions not keeping pace with population growth from interstate and overseas migration.
- Over a 10-year horizon, Adelaide property prices could rise between 55% and 85% in total if current supply constraints and population trends continue.
What are the current property price trends in Adelaide as of 2026?
What is the average house price in Adelaide as of 2026?
As of early 2026, the average house price in Adelaide sits at approximately A$980,000 (around US$630,000 or €580,000), placing the city just below the psychological $1 million mark that it is expected to cross soon.
When you look at price per square metre, Adelaide houses now average about A$4,600 per square metre (roughly US$2,950 or €2,700), which is calculated using the Australian Bureau of Statistics' average floor area data for South Australian homes of around 213 square metres.
In practical terms, about 80% of property purchases in Adelaide fall within a range of A$550,000 to A$1,400,000 (US$355,000 to US$900,000 or €325,000 to €825,000), depending on whether you're buying a unit, townhouse, or family home and which suburb you're looking at.
How much have property prices increased in Adelaide over the past 12 months?
Property prices in Adelaide have increased by approximately 12% to 13% over the past 12 months, making it one of the strongest performing capital city markets in Australia during this period.
When you break it down by property type, houses in Adelaide grew around 12% while units and apartments actually outperformed at roughly 14%, reflecting a shift as buyers look for more affordable options.
The single biggest factor behind this price surge has been the severe shortage of available homes for sale combined with continued strong population growth, which has kept buyers competing aggressively even as affordability has stretched.
Which neighborhoods have the fastest rising property prices in Adelaide as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising property prices in Adelaide are the northern corridor suburbs (Elizabeth, Davoren Park, Munno Para West), the gentrifying inner north (Prospect, Klemzig, Northgate), and the inner west/port-adjacent areas (Rosewater, Port Adelaide, Woodville).
The northern affordable suburbs have seen annual growth rates of 15% to 20%, the inner north gentrification zone around 12% to 15%, and the inner west spillover areas approximately 10% to 14% over the past year.
The main driver behind these fast-rising areas is simple: buyers who can no longer afford traditional middle-ring family suburbs are stretching into the next cheapest ring, creating a ripple effect that pushes prices up in previously overlooked neighborhoods.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Adelaide.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Adelaide as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Adelaide goes: units and apartments first (around 14% growth), townhouses and semi-detached homes second (around 12% to 13%), and detached houses third (around 12%).
Units and apartments have appreciated approximately 14% over the past year in Adelaide, which represents a catch-up phase after years of underperforming relative to houses.
The main reason units are now outperforming is that Adelaide has hit an affordability ceiling where many buyers simply cannot stretch to a house anymore, so demand has shifted toward the next most affordable option.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Adelaide?
- How much should you pay for an apartment in Adelaide?
- How much should you pay for a townhouse in Adelaide?
What is driving property prices up or down in Adelaide as of 2026?
As of early 2026, the top three factors driving Adelaide property prices are the severe shortage of homes for sale, continued strong population growth from interstate and overseas migration, and interest rates that have stabilized at 3.60% since August 2025.
The single factor with the strongest upward pressure on Adelaide property prices right now is the tight supply of available listings, because when there simply aren't enough homes to buy, competition among buyers pushes prices higher regardless of affordability concerns.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Adelaide here.
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What is the property price forecast for Adelaide in 2026?
How much are property prices expected to increase in Adelaide in 2026?
As of early 2026, property prices in Adelaide are expected to increase by approximately 5% to 7% over the calendar year, which represents a meaningful slowdown from the 12% to 13% growth seen in the previous 12 months.
Different analysts provide slightly varying forecasts: conservative estimates sit around 4% to 5%, mainstream forecasters like KPMG suggest 5% to 7%, while more bullish scenarios from firms like SQM Research allow for up to 8% to 10% if conditions remain favorable.
The main assumption underlying most forecasts is that interest rates will stay stable or decline slightly, which would support borrowing capacity without reigniting the kind of rapid growth that characterized 2024 and 2025.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Adelaide.
Which neighborhoods will see the highest price growth in Adelaide in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Adelaide include affordable family-house suburbs with good transport (Elizabeth, Munno Para West, Morphett Vale), gentrifying inner-ring areas (Prospect, Klemzig, Plympton), and infill townhouse hotspots near employment centers (Mawson Lakes, Lightsview, Bowden).
These top neighborhoods are projected to see price growth of 7% to 10% in 2026, which is above the city-wide average of 5% to 7% because they attract the strongest demand from affordability-constrained buyers.
The primary catalyst driving growth in these areas is that they represent the "next affordable step" for buyers who can no longer afford established middle-ring suburbs, combined with improved amenities and transport links.
One emerging neighborhood that could surprise with higher-than-expected growth is Kilburn, which sits at the edge of the gentrifying inner north and still offers relative value compared to nearby Prospect.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Adelaide.
What property types will appreciate the most in Adelaide in 2026?
As of early 2026, units and townhouses are expected to appreciate the most in Adelaide, continuing the trend from the past 12 months where these property types outpaced detached houses.
Units and townhouses in Adelaide are projected to appreciate by 6% to 9% in 2026, with well-located examples near jobs, universities, and transit potentially exceeding this range.
The main demand trend driving appreciation for these property types is simple affordability: as house prices approach $1 million, more buyers are being forced to consider smaller formats, and this shift in demand naturally pushes unit and townhouse prices higher.
Detached houses in outer-ring suburbs with limited amenities are expected to underperform in 2026 because they require longer commutes and don't offer the lifestyle benefits that justify their rising price tags for many buyers.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Adelaide in 2026?
As of early 2026, the stable interest rate environment is providing support to Adelaide property prices, because the RBA has held the cash rate at 3.60% since August 2025, which has allowed buyers' borrowing capacity to stabilize after years of tightening.
The current RBA cash rate of 3.60% translates to typical mortgage rates of around 6% to 6.5% for Adelaide buyers, and most analysts expect rates to hold steady or decline slightly through 2026 if inflation remains under control.
As a general rule, a 1% change in interest rates affects borrowing capacity by roughly 10% to 12% in Adelaide, which means that if rates were to rise unexpectedly, buyers would be able to afford significantly less, putting immediate downward pressure on prices.
You can also read our latest update about mortgage and interest rates in Australia.
What are the biggest risks for property prices in Adelaide in 2026?
As of early 2026, the three biggest risks for Adelaide property prices are a hardening of the affordability ceiling where buyers simply refuse to stretch further, an unexpected rise in interest rates if inflation proves stubborn, and a potential increase in housing supply if building approvals translate into completions faster than expected.
The risk with the highest probability of materializing in Adelaide is the affordability ceiling hardening, because prices have risen so rapidly that many households are already at their borrowing limits, and any further stretch would require either higher incomes or lower rates.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Adelaide.
Is it a good time to buy a rental property in Adelaide in 2026?
As of early 2026, buying a rental property in Adelaide can still make sense, but only if the numbers work at today's elevated prices, because strong population growth and tight supply continue to support rental demand even as purchase prices have risen sharply.
The strongest argument in favor of buying now is that Adelaide's structural undersupply of housing means rental demand is likely to remain robust for years, with vacancy rates staying low and rents continuing to grow.
The strongest argument for waiting is that purchase prices have risen faster than rents, which has compressed rental yields, meaning investors need to rely more heavily on capital growth that may slow from recent double-digit rates to mid-single digits.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Adelaide.
You'll also find a dedicated document about this specific question in our pack about real estate in Adelaide.
Buying real estate in Adelaide can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Adelaide?
What is the 5-year property price forecast for Adelaide as of 2026?
As of early 2026, Adelaide property prices are expected to grow by approximately 25% to 35% in total over the next five years, which would see the current median house price of around A$980,000 rise to between A$1.2 million and A$1.3 million by 2031.
The range of 5-year forecasts spans from a conservative scenario of around 20% cumulative growth (if affordability really bites and rates stay elevated) to an optimistic scenario of up to 40% (if supply remains extremely tight and rates fall significantly).
This translates to a projected average annual appreciation rate of roughly 4.5% to 6% per year over the next five years in Adelaide, which is slower than recent performance but still solid by historical standards.
The key assumption most forecasters rely on is that Australia's chronic housing undersupply will persist, because without a major breakthrough in construction capacity and planning approvals, demand will continue to outstrip supply.
Which areas in Adelaide will have the best price growth over the next 5 years?
The top three areas expected to deliver the best price growth in Adelaide over the next five years are inner-ring gentrifying suburbs with limited new land (Prospect, Kilburn, Klemzig, Croydon), middle-ring family suburbs with improving amenity (Plympton, Warradale, Modbury), and selective coastal pockets where scarcity always matters (Seaton, Semaphore, Brighton).
These top-performing areas are projected to see 5-year cumulative growth of 35% to 50%, outperforming the city-wide average of 25% to 35% because they combine access, livability, and relative scarcity.
This longer-term outlook is similar to the 2026 forecast in its emphasis on affordability-driven demand, but differs in that infrastructure improvements (like South Road upgrades) have more time to influence values, benefiting transport-linked suburbs more substantially.
The currently undervalued area with the best potential for outperformance over five years is Kilburn, because it sits at the edge of the gentrification wave spreading from Prospect and still offers entry prices well below its neighbors.
What property type will give the best return in Adelaide over 5 years as of 2026?
As of early 2026, townhouses and well-located units are expected to give the best total return over five years in Adelaide, because they're most aligned to the next wave of demand from downsizers, first-home buyers priced out of houses, and investors focused on tenant affordability.
The projected 5-year total return (combining capital appreciation and rental income) for well-located townhouses in Adelaide is approximately 45% to 65%, assuming mid-single-digit annual appreciation plus rental yields of 4% to 5%.
The main structural trend favoring townhouses is that Adelaide's housing affordability will continue to push more buyers toward medium-density options, and this demand shift tends to accelerate as house prices cross psychological thresholds like $1 million.
For investors seeking the best balance of return and lower risk over five years, well-located units near hospitals, universities, or transport hubs offer steadier rental demand and less volatility than suburban houses at the market's fringe.
How will new infrastructure projects affect property prices in Adelaide over 5 years?
The top three major infrastructure projects expected to impact Adelaide property prices over the next five years are the River Torrens to Darlington (T2D) South Road upgrade creating a non-stop corridor, ongoing transport improvements identified in Infrastructure SA's 20-Year Strategy, and urban renewal projects in inner suburban areas like Bowden and Tonsley.
Properties near completed infrastructure projects in Adelaide typically see a price premium of 5% to 15% compared to similar properties further away, with the exact benefit depending on how much the project improves commute times or access to amenities.
The specific neighborhoods that will benefit most from these infrastructure developments include suburbs along South Road (Edwardstown, Melrose Park, Clovelly Park), areas connected to improved public transport, and renewal precincts like Bowden and Lightsview that are designed around new infrastructure.
How will population growth and other factors impact property values in Adelaide in 5 years?
Adelaide's population is projected to continue growing at around 1% to 1.5% annually over the next five years, which translates to roughly 15,000 to 20,000 additional residents per year and sustained upward pressure on property values as housing supply struggles to keep pace.
The demographic shift that will have the strongest influence on Adelaide property demand is the growth in smaller households, including young professionals, downsizers, and single-person households, which increases demand for units and townhouses relative to large family homes.
Migration patterns, both from overseas and from more expensive capitals like Sydney and Melbourne, are expected to continue driving Adelaide property values higher because the city remains significantly more affordable while offering good lifestyle amenities.
The property types and areas that will benefit most from these demographic trends are medium-density options (townhouses, apartments) in inner and middle-ring suburbs close to employment, health services, and public transport.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Adelaide?
What is the 10-year property price prediction for Adelaide as of 2026?
As of early 2026, Adelaide property prices are expected to grow by approximately 55% to 85% in total over the next 10 years, which would see the current median house price of around A$980,000 rise to between A$1.5 million and A$1.8 million by 2036.
The range of 10-year forecasts spans from a conservative scenario of around 45% cumulative growth (if supply finally catches up or affordability triggers a prolonged slowdown) to an optimistic scenario of up to 100% (if chronic undersupply persists and population growth remains strong).
This translates to a projected average annual appreciation rate of roughly 4.5% to 6.3% per year over the next decade in Adelaide, which aligns with long-run Australian housing market performance.
The biggest uncertainty factor in making 10-year predictions for Adelaide is whether Australia can meaningfully increase its housing construction capacity, because a breakthrough in supply would moderate price growth while continued constraints would support stronger appreciation.
What long-term economic factors will shape property prices in Adelaide?
The top three long-term economic factors that will shape Adelaide property prices over the next decade are real household income growth (which determines long-term buying power), the interest rate regime over economic cycles (which affects borrowing capacity), and housing supply productivity (which determines how well construction can meet demand).
The single factor with the most positive impact on Adelaide property values over the long term is likely to be the city's relative affordability compared to Sydney and Melbourne, which will continue to attract interstate migrants and support demand even as local prices rise.
The greatest structural risk to Adelaide property values is a sustained increase in the neutral interest rate, because if borrowing costs settle at a permanently higher level than the pre-2022 era, it would cap how much buyers can afford regardless of other factors.
You'll also find a much more detailed analysis in our pack about real estate in Adelaide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Adelaide, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Reserve Bank of Australia - Cash Rate | It's Australia's official source for the policy interest rate that drives mortgage costs. | We use it to anchor mortgage rate pressure and borrowing capacity analysis. We treat it as the baseline "price of money" feeding into Adelaide buyer demand. |
| RBA Statement on Monetary Policy | It's the RBA's official view on credit conditions and lending dynamics. | We use it to judge whether credit is loosening or tightening. We translate that into pressure on Adelaide prices via borrowing capacity. |
| ABS Regional Population | The ABS is Australia's national statistics agency and the benchmark for population data. | We use it to quantify growth in Greater Adelaide and housing demand. We treat population change as a slow-moving but powerful price driver. |
| ABS Overseas Migration | It's the official source for net overseas migration into Australia. | We use it to understand the national demand pulse feeding capitals including Adelaide. We combine it with local supply data to assess price pressure. |
| ABS Building Approvals | It's the official pipeline indicator for new dwelling supply. | We use it as a leading signal for future housing supply. We cross-check against Adelaide's listing scarcity to judge if relief is coming. |
| ABS Average Floor Area | It's a transparent ABS method for measuring dwelling floor areas. | We use it to estimate price per square metre with a consistent, auditable proxy. We apply it carefully and explain limitations. |
| SA Valuer-General | It's the state authority for official valuation-linked market statistics. | We use it to validate medians and suburb-level movements via SA government data. We treat it as the official local cross-check. |
| Data SA Metro Median Sales | It's a government open-data feed of actual suburb median prices. | We use it to name real Adelaide suburbs and compare growth pockets. We rely on it for "fastest rising" suburb examples with sufficient sales volumes. |
| REISA Market Updates | It's South Australia's peak real estate industry body with structured reports. | We use it to corroborate quarterly medians and highlight suburb standouts. We cross-check against government data to avoid single-source bias. |
| Cotality Home Value Index | It's one of Australia's most-cited housing indexes with transparent methodology. | We use it for current trend direction and to separate house versus unit momentum. We treat it as an index of value movement. |
| PropTrack Home Price Index | It's a major index from REA Group with stated methodology and broad coverage. | We use it as an independent second index to cross-check Cotality's direction. We look for agreement before making confident estimates. |
| PropTrack December 2025 Commentary | It's a current market wrap tied directly to PropTrack index results. | We use it to interpret late-2025 slowdown signals and rate expectations. We use the narrative only where clearly tied to the data. |
| SQM Research | It's a long-running Australian housing research firm with consistent weekly data. | We use it as a high-frequency pulse-check on asking prices and stock. We treat it as directional confirmation, not the sole median truth. |
| National Housing Supply and Affordability Council | It's an official national council focused on supply and structural housing issues. | We use it to ground the story in supply constraints and why undersupply matters. We tailor national findings to Adelaide using local signals. |
| Infrastructure SA | It's South Australia's long-term infrastructure planning authority. | We use it to identify where transport and land-use planning can shift demand. We map it to corridors where accessibility upgrades lift desirability. |
| Dept of Infrastructure - T2D Project | It's a primary government source confirming major project timing and scope. | We use it to support infrastructure-driven suburb demand. We treat it as a medium-term catalyst rather than an instant price booster. |
| KPMG Property Outlook | It's a major consultancy with published forecasts and consistent macro analysis. | We use it for mainstream 2026 forecast ranges. We triangulate against other forecasters to avoid anchoring to one source. |
| Domain Forecast Report 2026 | It's a widely used research desk with consistent capital-city methodology. | We use it to sanity-check affordability ceiling risks in Adelaide. We treat it as a narrative cross-check for our forecasts. |
| SQM Boom and Bust Report | It's a published forecast from a specialist housing research firm. | We use it to stress-test upside and downside scenarios. We blend it with more conservative forecasters for a balanced estimate. |
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If you want to go deeper, you can read the following: