December 2025
12 consecutive quarters
11 consecutive quarters
Adelaide's housing market delivered one of the standout performances of any Australian capital in the December quarter of 2025. House prices surged 5.0% — the largest quarterly gain in almost four years — to reach a record median of $1,094,427. It was the 12th consecutive quarter of growth, a run that represents the longest and strongest upswing the city has seen since 2004-08.
The result extended Adelaide's position inside the million-dollar club. Having crossed the $1 million threshold for the first time in the March 2025 quarter, Adelaide closed the year more than 9% above that milestone — overtaking Perth's median and pulling within $17,000 of Melbourne, within touching distance of another national ranking reshuffle.
Annual price growth reached 11.9%, adding $116,252 to the typical Adelaide home over the past twelve months — a pace that has held above 10% for the better part of three years, a durability that distinguishes Adelaide from markets with shorter-lived momentum.
Where Adelaide Stands Among the Capitals
Among the eight capital cities, Adelaide now ranks fourth for annual house price growth, trailing only Darwin (+22.4%), Perth (+18.4%) and Brisbane (+13.3%). This positioning reflects a market that has sustained growth over a longer period without the volatility seen in some faster-moving cities.
On median house price, Adelaide now sits fifth nationally at $1,094,427 — ahead of Perth ($1,087,762) and within $17,000 of Melbourne ($1,111,084). The city that was once considered among the most affordable major markets in Australia has permanently repositioned itself in the national price hierarchy. A buyer who paid the Adelaide median in early 2023 has gained more than $300,000 in equity over three years.
Houses Regain the Lead
The December quarter marked a turning point in Adelaide's property dynamic. For the first time in a year, house price growth outpaced units — surging 5.0% compared to units' 2.0% quarterly gain. This reversal follows three consecutive quarters of unit outperformance, as buyers had increasingly sought value in higher-density housing.
Unit prices nonetheless closed 2025 at a record $634,366, marking an 11th consecutive quarter of growth — the longest run since 2001-04. Annual unit price growth held at 12.9%, keeping Adelaide's unit market among the strongest performers nationally. At a median of $634,366, Adelaide is now the third most expensive capital city in which to buy a unit — behind only Sydney and Brisbane, having overtaken Canberra and Melbourne in under four years. A house in Adelaide is now 73% more expensive than a unit, underscoring how dramatically the city's price composition has shifted.
Three Years of Compounding Growth
The longer trajectory tells a compelling story. In the March 2023 quarter, the Adelaide median house sat at $791,904. By December 2025, that figure had reached $1,094,427 — a gain of more than $300,000, or approximately 38%, over three years. The city has not experienced a single quarterly decline across this period.
Unit prices have shown similar resilience, rising from approximately $424,000 at the start of 2023 to $634,366 by the close of 2025 — a gain of nearly 50% over the same period. The widening gap between house and unit price trajectories reflects a broader shift in buyer behaviour, with unit demand strengthening as houses moved further out of reach for first-time buyers and investors seeking yield.
Rental Market Holding Steady at Record Levels
Adelaide's rental market has moved into a period of consolidation after years of sharp increases. House rents held flat at $620 per week in the December quarter — the second consecutive quarter of stability and the first time rents have held flat for two straight quarters in more than six years. Annual house rent growth slowed to 3.3%, the weakest in 5.5 years, as affordability constraints continue to cap how far rents can rise.
Unit rents rose modestly to $525 per week, up 1.0% over the quarter, with annual growth easing to 7.1% — the lowest in almost four years. The vacancy rate lifted to 0.6%, still historically very tight and among the lowest in the country, indicating that rental competition remains intense even as the pace of rent increases moderates.
What It Means for the Market
Adelaide's sustained growth reflects a structural rather than cyclical shift. The city has benefited from a combination of interstate migration, a chronically tight rental market, low housing supply, and growing demand from east-coast buyers attracted by its relative value proposition — even as that premium has narrowed considerably. A resilient local economy and strong population dynamics have ensured demand has remained firm even as affordability has stretched.
The momentum heading into 2026 is backed by a market still well below Sydney and Brisbane in absolute price terms, suggesting the relative affordability argument — while weaker than it was in 2022 — has not entirely faded. Whether that gap can sustain further buyer interest from interstate and overseas migrants will be a key factor in how Adelaide's property market performs in the year ahead.
