Adelaide and Perth positioned for growth over 2025

South Australian market remains resilient

REBAA’s South Australian state representative, Jess Ellam, said that favourable factors in Adelaide cemented the city’s status as one of the nation’s “most resilient property markets”.

“Steady population growth, tight housing supply, and consistently high rental demand have supported ongoing price growth across the city,” she said.

Cotality’s data showed that Adelaide house prices climbed by 15.1 per cent over the past 12 months, and unit values surged 18.5 per cent during the period, which REBAA linked to increased demand for affordability and flexibility.

Ellam said that the Adelaide market remains highly competitive, with the citywide vacancy coming in at just 0.7 per cent – among the lowest across the nation.

She further explained that rents have continued to rise over 2025, with data from SQM Research showing that house rents increased by over 12 per cent, and units rose by more than 8 per cent.

Ellam said that investor interest has also increased due to the intensified competition in the South Australian market.

“Over the past year, I’ve worked with a growing number of local and interstate investors targeting high-performing suburbs like Plympton, Glengowrie, Seaton, and areas along the southern coastline,” Ellam said.

“These locations offer a strong combination of growth history, attractive yields, and future infrastructure upside,” she added.

Amid the consistent value increases, Ellam said that Adelaide offers “relative affordability” for buyers within 10–15 kilometres of the CBD, and separates itself from the other capital cities by presenting quality property for under $1 million.

She said that potential interest rate cuts from the Reserve Bank of Australia (RBA) could strengthen momentum among Adelaide buyers, and drive prices further upwards.

“Market sentiment remains strong, and the imbalance between supply and demand suggests upward pressure on both property values and rents will persist.”

Off the top of positive conditions in Adelaide, Ellam said the city was expected to continue on its upward trajectory over the rest of 2025.

“While Adelaide’s growth may not always make headlines, it remains steady and sustainable, supported by strong underlying factors. This makes it one of the most balanced markets in the country heading into FY 2025–26.”

Growth slower but pegged to continue in Western Australia

Over to the west, REBAA’s Western Australian state representative, Peter Gavalas, said that Perth’s median house price continues to rise, albeit at a slower rate compared to 2024.

Nevertheless, Gavalas said that historically low levels of supply in Perth and persistently strong demand have kept sales activity high in the City of Light.

Gavalas pointed to recent data from the Real Estate Institute of Western Australia (REIWA) in stating that Perth’s dwelling values are currently at a record high.

“The median house price increased by 0.6 per cent in May and was 18 per cent higher than the same time last year,” Gavalas said.

“The median unit price increased by 1.9 per cent in May, which is 21 per cent higher than a year ago, according to REIWA,” he added.

While REIWA data showed that the 4,352 active listings at the end of May were 6.6 per cent lower than in April, Gavalas noted that the most recent levels still registered 32.9 per cent higher than a year ago.

Gavalas said that investor activity in Western Australia dropped by a whole percentage point compared to one year prior, but noted that the city’s resilience has bolstered Perth’s status in the eyes of investors.

“Investor activity has also increased recently. With property prices remaining robust and rental yields strong, Perth continues to be seen as an attractive investment location,” Gavalas said.

Even though the institute observed that first home buyer finance fell by 0.9 per cent, Gavalas said that recent changes to Western Australia’s stamp duty thresholds will spark renewed interest in this market segment.

He said that activity in the upgrader market segment of Perth had also flourished over the first half of 2025.

“The market segments showing the most strength and attracting multiple offers are typically the upgrader markets – buyers seeking to move into more aspirational suburbs, often within school catchments, closer to the city or water, or near key amenities,” Gavalas said.

Looking at the broader Perth market, Gavalas said that the short supply of quality properties amid high demand would drive the city’s dwelling values higher over the year.

“The ongoing shortage of quality properties is maintaining upward pressure on prices, with high demand and increased competition driving values higher,” he concluded.