Adelaide house values are on the brink of hitting a once-inconceivable benchmark following double-digit growth in 2025.
PropTrack’s latest Home Price Index report reveals the capital’s median house price is edging closer to the $1m mark.
It reached $983,000 by December following 0.7 per cent growth for the month and 12.5 per cent for the year.
Adelaide house values are $107,500 higher now than they were by the end of 2024.
The capital’s median dwelling value – for houses and units combined – also hit a milestone.
It has officially eclipsed $900,000, according to the report, reaching $908,000 by year’s end.
Following 12.8 per cent growth over the past year and 0.8 per cent in December – the highest monthly rise in the country – the combined house and unit value is now $101,600 higher than a year ago.
Real Estate Institute of South Australia chief executive Andrea Heading said the type and volume of properties that hit the market would determine when Adelaide’s median house value reached the $1m mark.
She said as homes in areas like the northern corridor and Mount Barker where prices were more affordable sold, that would keep the median value lower.
While the median was close to $1m, Ms Heading said there were still many suburbs across the metropolitan area that offered more affordable houses.
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“It will be on the horizon but it probably will take two to three years,” she said.
Ms Heading expected the market to be much more balanced over the next few months after another year of strong growth, which she said was largely because of intense demand.
“We had another big growth spurt in 2025 with the median increasing each month,” she said.
“When there are more buyers than what there are properties on the market, then it becomes incredibly competitive for people who can afford to put the prices up.”
Ms Heading said reaching a $1m median would make househunting difficult for those seeking affordable homes.
“For first-home buyers, it’s just harder to crack into a market that’s on a trajectory upwards,” she said.
REA Group senior economist and report author Anne Flaherty said annual dwelling growth was mixed across the country but Adelaide stood out as the best performing capital for December.
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Real Estate Institute of South Australia chief executive Andrea Heading.
“Adelaide, Brisbane and Perth recorded strong gains over the month, while prices dipped in Sydney and Melbourne,” she said in the report.
“Regional areas outperformed the capitals, recording higher price growth over both the month and the year.
“Just as Perth, Brisbane, and Adelaide have been the best performing capital city markets over the past year, their respective regional markets have likewise led growth regionally.”
The report shows Regional SA’s median dwelling value rose 0.7 per cent in December and 11.7 per cent in 2025 to $489,000.
Ms Flaherty said prices were likely to continue rising but several factors would slow growth.
“Home prices are predicted to head to new highs in 2026, however the pace of growth is expected to slow,” she said.
“Price growth in 2025 was supported by three rate cuts. This year, no further cuts are expected, and there is a possibility rates could rise if inflation persists.
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REA Group senior economist Anne Flaherty.
“Counteracting this headwind, however, is limited new housing supply and persistent demand. “The Australian Government 5 per cent Deposit Scheme is also likely to support price growth by driving up demand, particularly at the more affordable end of the market.”
Across Adelaide, unit prices rose 1.3 per cent in December and 14.1 per cent over the year to a median of $680,000.
Meanwhile, regional SA house prices recorded 0.8 per cent growth for the month and 11.5 per cent for the year, taking the median to $493,000, while the median unit price was 0.5 per cent and 14.6 per cent higher respectively at $462,000.
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