- Adelaide’s property market delivers strong, consistent capital growth, outperforming most Australian cities over the past 20 years.
- Diversified economy, low vacancy rates, and high buyer demand underpin Adelaide’s rising median dwelling prices.
- Despite years of growth, Adelaide’s market remains robust, with prices and demand continuing to rise in 2024.
It may not be on every investor’s radar but it should be – Adelaide is one of Australia’s most remarkable property markets.
The days when no one wanted to buy there because Adelaide was regarded as a no-growth city in a no-growth state economy, are long gone, according to Hotspotting General Manager, Tim Graham.
Mr Graham said Hotspotting analysis of Adelaide showed it achieved long-term capital growth which was superior to most other places in Australia.
And this was backed by its credentials as one of Australia’s leading economies.
“When car manufacturing closed down in Adelaide, everyone wrote that city off as not worthy of investment,” Mr Graham said.
“They all thought the economy would fall off a cliff but it didn’t. Instead, it picked itself up and focused on building its economy in another direction, including technology and submarines, and now it’s a place that investors are wishing they had bought years ago.”
Adelaide is among the top cities for delivering the highest capital growth in the past 20 years, Mr Graham said.
“Most Adelaide suburbs have averaged better than 10% a year over the past five years, with many averaging 15% or more. And in 2024, Adelaide house prices rose 13% while unit prices lifted 17% – only Perth did better.”
Property asking prices for Adelaide over the last decade
Mr Graham said one of the standout characteristics of the Adelaide market was its consistency with buyer demand remaining strong over the past five years and prices continuing to grow.
“Today Adelaide has a median dwelling price higher than Melbourne, as well as Perth, Hobart and Darwin – and not much below Brisbane,” he said.
“Adelaide’s property market offers consistent growth, low vacancy rates, and a strong economy. Outperforming most cities, it’s now a top choice for investors.”
Tim Graham, Hotspotting
Mr Graham said the property market was underpinned by a great state economy, which has been consistently ranked the best in the nation over the past 12-18 months in the quarterly editions of the State of the States report by CommSec.
It has a vacancy rate well below 1% and a good record of creating jobs.
“Investors considering Adelaide need to keep in mind that this market has had a number of years of price growth and appears well advanced in the current cycle. But, at this point, buyer demand and prices continue to grow.”
