Adelaide’s Median House Price Nears $1 Million Mark
Analysts are optimistic about Adelaide’s real estate market as the median house price approaches the remarkable $1 million threshold. Recent figures from South Australia’s Valuer-General indicate that the median sale price in metropolitan Adelaide reached $925,000 during the December quarter of 2025. This marks a $50,000 increase from the $875,000 recorded in the September quarter.
Median House Prices in Adelaide
Different sources report varying figures for Adelaide’s median house prices. According to PropTrack, the median reached $983,000 in December 2025, while Domain reported it at $1,094,427 for the same period. This disparity highlights differing methodologies used by the organizations in determining property values.
Expert Opinions on Future Trends
Urban economist Terry Rawnsley from KPMG remarked that he does not anticipate Adelaide’s median house price will exceed $1 million in 2026. He stated, “Demand is kind of coming off a bit; you’ve seen supply picking up, so it’s probably getting close to that million mark.”
- Demand decreasing slightly.
- Increase in housing supply.
- Predicted price stabilization below $1 million in 2026.
Real Estate Institute of South Australia (REISA) chief Andrea Heading also expressed uncertainty about reaching the $1 million mark. She emphasized the disagreement among economists, with some confidently predicting an increase while others advocate caution. Heading believes the forthcoming Reserve Bank of Australia meeting will likely not result in a rate cut, which could help keep prices manageable.
Current Market Activity
Notably, real estate agent Meg Meadows reported a strong start to 2026, noting over 450 attendees at property inspections mid-January. She conveyed that the market remains vibrant, evidenced by the considerable turnout at open inspections.
Changing Affordability Landscape
Historically, Adelaide has been perceived as an affordable housing market. However, Rawnsley emphasized that this perception has shifted. The narrowing price gap with larger cities, such as Sydney and Melbourne, has made housing affordability a growing challenge in Adelaide.
Contributing Factors to Price Trends
- Increased demand from interstate and international migration.
- Pressure on supply leading to price growth.
- Government initiatives improving housing supply and infrastructure.
Despite these efforts, Meadows identified a persistent shortage of housing inventory, which continues to hinder first-time buyers in a competitive environment. “Younger buyers are facing tough competition and often miss out,” she noted.
Future Predictions for Housing Prices
Looking ahead, forecasts suggest continued price growth in Adelaide. Rawnsley predicts a 5% increase in house prices and a 4% rise in apartment values during 2026. Although this growth may not be drastic, it continues to pose challenges for prospective buyers saving for a home.
