Thinking of investing in property in Adelaide? Then you will want to know how the South Australian capital performed in 2024 - and what key players are forecasting for this market in 2025. 

In the past, Adelaide may not have been typically known as an especially lively market, but the strong growth over recent years has upended many preconceived notions, and investors have had an ever-growing appetite for the city.

Read on for what property experts and the big banks are predicting for the year ahead - together with a selection of top-performing Adelaide suburbs to add to your shortlist.

What did the Adelaide property market look like in 2024?

Adelaide’s property market performed exceptionally well in 2024, with median property prices rising by +13.1 per cent to $814,430, according to CoreLogic’s January 2025 HVI report. Although the pace of growth began to ease in the second half of the year, Adelaide remained at peak property price levels, having surged +72.1 per cent since the onset of the pandemic and +93.3 per cent over the past decade. Notably, Adelaide surpassed Melbourne in 2024 to become the fourth most expensive capital city in Australia, further cementing its reputation as a sought-after market.

A combination of factors contributed to Adelaide’s robust growth. National Property Buyers highlighted the city’s resilience amid challenges such as high interest rates and cost-of-living pressures. Supply constraints played a major role, with advertised stock levels sitting 34 per cent below the five-year average by late 2024. This low supply fueled strong competition, particularly for high-quality family homes and investment-grade properties.

Investor activity remained strong thanks to Adelaide’s high rental yields and low vacancy rates, with the city reporting the second-lowest vacancy rate of all Australian capitals at just 0.7 per cent. Rental yields averaged 4.6 per cent for investor clients, well above the national average of 3.7 per cent, according to National Property Buyers. Additionally, rents saw impressive annual increases of +6.2 per cent for houses and +15.7 per cent for units, as reported by SQM Research.

Adelaide’s growing appeal as a lifestyle destination, with proximity to beaches, hills, and wineries, has also bolstered its market performance, making it a standout choice for buyers seeking both investment potential and quality of life.

Adelaide real estate predictions and price forecast 2025

Adelaide’s property market is set to continue its upward trajectory in 2025, though at a more modest pace compared to the stellar growth seen in 2024.

Westpac projects a +4% increase in Adelaide property prices, noting a “robust run continuing but price relativities looking very stretched.” NAB is slightly more optimistic, forecasting a +7.9% rise for the year, reflecting ongoing demand in one of Australia’s most resilient housing markets.

SQM Research offers a broader range of possibilities, predicting growth between +4% and +14%, depending on key factors such as inflation, interest rate cuts, and continued population growth. 

The outlook from PropTrack economist Anne Flaherty aligns with these tempered expectations, stating, “I think we’re likely to continue to see price rises in Adelaide but nowhere near to the levels that we saw them grow in 2024.” Flaherty also anticipates the market transitioning to a healthier balance of supply and demand, which could moderate price growth.

With sustained low supply levels and Adelaide’s reputation for offering strong value compared to other capitals, the market is expected to remain attractive to both local and interstate buyers. While affordability remains a concern for some segments, Adelaide continues to show potential for steady growth, providing opportunities for investors and homeowners alike.

How is the Adelaide apartment market performing?

Adelaide’s apartment market outpaced the city’s housing market in 2024, with units achieving stronger annual price growth and rental increases. CoreLogic data reveals that while Adelaide house prices grew by +12.5 per cent over the year, unit prices surged by +16.9 per cent, highlighting the increasing demand for apartments as a more accessible property option.

The rental market followed a similar trend, with unit rents rising by +9.2 per cent compared to +6.1 per cent for houses. This dynamic suggests a growing preference for apartments among both renters and buyers, particularly as affordability challenges persist in the housing market.

Turner Real Estate CEO Emma Slape commented on the shift, noting that rising property prices have driven more first home buyers toward units as a realistic entry point. “We have definitely seen more first home buyers purchase and occupy a unit,” she told REA. “Five years ago, most first home buyers were focused on a house as their first buy, but now, a unit is a realistic entry point and is still an excellent investment for the longer term.”

With apartments increasingly seen as a viable and attractive option, the momentum for Adelaide’s unit market is expected to continue into 2025.

Best suburbs to invest in Adelaide in 2025

Here are some of the top spots for property investors to look at around Adelaide in 2025 as recommended by leading experts from around the country. 

Elizabeth Vale, SA 5112

Elizabeth Vale, with a median house price of $532,000, experienced remarkable growth in 2024, with house prices rising by +21.6 per cent and units surging by an impressive +30.4 per cent. Highlighted by Smart Property Investment’s Fast 50 report, this northern Adelaide suburb is celebrated for its affordability and community atmosphere. Families and investors are drawn to its proximity to two hospitals, schools, shopping centres, and the expansive Boundary Park, as well as its range of housing options from established homes to newer units.

Ridgehaven, SA 5097

Ridgehaven, located just 15 kilometres from Adelaide’s CBD, recorded steady growth in 2024, with house prices increasing by +8.4 per cent to a median of $705,500 and unit prices rising by +17.2 per cent to $510,000. The Fast 50 report recommended the area for its mix of traditional and modern homes, which attract families and professionals. With excellent schools, parks, and shopping centres, Ridgehaven offers a comfortable and well-connected suburban lifestyle.

Salisbury North, SA 5108

Salisbury North is thriving, with house prices soaring by +26.7 per cent in 2024 to a median of $553,750. Again recommended by the Fast 50 report, this northern suburb boasts convenience and affordability, offering easy access to Adelaide’s CBD via buses and major roadways. Its spacious property lots and character homes make it an appealing choice for families and professionals seeking value, charm, and connectivity.

Hillcrest, SA 5086

Hillcrest saw house prices climb by +13.0 per cent in 2024 to a median of $791,500, earning a spot in REA’s Hot 100 Suburbs to Watch in 2025. Real estate expert Rich Harvey highlights its gentrification, with new developments and infrastructure upgrades driving demand. Known for its leafy streets, post-war bungalows, and modern townhouses, Hillcrest attracts young professionals and families drawn to its parks, shopping hubs, and excellent public transport links.

Christies Beach, SA 5165

Christies Beach, just 30 minutes south of Adelaide’s CBD, combines a vibrant coastal lifestyle with essential amenities. House prices grew by +18.4 per cent in 2024 to a median of $700,000, while units reached $550,000 with modest growth of +2.0 per cent. REA’s Hot 100 list praises this suburb for its sandy beaches, proximity to Noarlunga Hospital, and affordability. Leading market analyst Peter Koulizos describes Christies Beach as an undervalued seaside suburb, offering excellent potential compared to other beachside locations across the country.

Largs North, SA 5016

Largs North, a north-western Adelaide suburb, recorded house price growth of +18.4 per cent in 2024, bringing the median to $806,500. Featured in REA’s Hot 100 for 2025, it’s highlighted for its coastal appeal and proximity to Port Adelaide and the growing submarine industry in Osborne. Koulizos notes its affordable housing options, strong transport links, and recreational spaces, which attract first-home buyers, families, and investors. With ongoing development nearby, Largs North is well-positioned for long-term capital growth.