Adelaide Home Values Surge as Buyers Flock to South Australia’s Top Growth Cities

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South Australia’s property market is showing no signs of slowing, with both Adelaide and key regional centres posting record-breaking home values in the second quarter of 2025. According to the latest report from the Valuer General, property prices across metropolitan Adelaide have reached new peaks, reflecting growing buyer demand and investor confidence in the state’s stable and relatively affordable housing sector.

Metropolitan Adelaide continues to outperform national averages, thanks to sustained buyer interest in sought-after suburbs like Prospect, Norwood, and Unley. These areas, known for their proximity to the city centre and well-established amenities, have seen robust growth in both median prices and sales activity. Homeowners have enjoyed solid capital gains over the past 12 months, while first-home buyers are being drawn in by South Australia’s comparatively accessible entry points, especially when compared to overheated markets in Sydney and Melbourne.

Outside the city, regional towns such as Mount Barker and Gawler have become hot spots for home seekers priced out of the metropolitan fringe. These areas are benefiting from infrastructure upgrades, improved transport links, and a growing shift toward remote and hybrid work arrangements. As a result, property values in these regional hubs are catching up with their urban counterparts. Buyers appear increasingly willing to trade longer commutes for larger land parcels and a more relaxed lifestyle, fuelling fresh interest across rural corridors.

The continued growth in Adelaide and regional South Australia comes amid ongoing concerns about housing supply, inflationary pressures, and broader economic uncertainty. However, South Australia’s relatively resilient economy, bolstered by defence spending, agriculture, and migration, offers a counterweight to national housing headwinds. If current trends hold, the state may continue to enjoy a competitive edge as a destination for families, retirees, and investors alike. With affordability still within reach and key development projects underway, Adelaide and its surrounding towns are well positioned to lead Australia’s next wave of residential growth.