The Adelaide property market’s growth story appears to be entering a new chapter, with early signs suggesting its record-breaking run might be reaching its natural limits. After becoming one of the leading markets for the past five years, it’s now showing the first signs of easing, though the shift remains subtle.
CoreLogic’s Home Value Index reveals an impressive 69% surge in prices since early 2020 – more than double much of the rest of the country and just shy of Perth’s 74.6%. Remarkably, Adelaide’s median home price has now overtaken Melbourne’s, reaching $802,075 compared to Melbourne’s $777,390.
However, as the market evolves, Adelaide is showing clear signs of slowing. While September recorded a 1.3% price increase, local indicators suggest there’s a shift in momentum. Property listings are increasing while attendance at open homes is thinning out – classic signals of a market beginning to rebalance.
The outer suburb dynamic
The market change is clear in Adelaide’s outer suburbs. Areas like Playford and Salisbury, on the city’s northern fringe, have posted big growth figures of 21.6% and 20% over the past year. Adelaide buyers agency experts have been particularly active in these types of areas. However, these dramatic increases raise questions about sustainability, particularly when considering local income levels and their capacity to support high prices.
That said, Adelaide’s established inner-ring suburbs, especially within 5-10km of the CBD, continue to have solid fundamentals. Properties around the $1 million mark in these areas typically benefit from stronger local economies and more diverse employment bases. The coastal markets, particularly Christies Beach and Port Noarlunga, are showing solid performance as well, with investors clearly still interested in these areas.
Market fundamentals
While Adelaide’s previous affordability advantage has largely ended, several factors continue to support the market. Strong net migration, limited land releases for new development, and adelaide buyers agents still holding on are keeping the market stable.
Despite increased stock levels and reduced buyer competition, underlying market fundamentals remain relatively strong. This isn’t indicating market weakness – rather, it suggests a return to more balanced conditions.
Investment considerations
The next three months could present some opportunities for investors in Adelaide. While the best buyers agency Adelaide has to offer is still waiting on potential interest rate cuts, this period might offer good entry points in quality areas.
Success in this market will likely depend on focusing on locations with proven fundamentals. Established areas with different economic drivers are historically more stable compared to fringe suburbs where rapid price growth may have outpaced local incomes.
Like always, if you’re looking to make the most of the current market conditions, focus on the best areas. Blue-chip areas in Adelaide, like every city in the country, will always come out on top over the long term because there will always be steady demand.
These are also areas where the people living in those areas can typically afford higher prices. That’s not always going to be the case in the outer suburbs, and that’s why those areas tend to be more at risk from the boom/bust cycles.
