South Australia’s Property Market in 2026: Outlook and What to Expect

The South Australian property market is looking fairly solid for the start of 2026. Price growth across houses and units has eased from the highs of recent years, but it remains positive and well supported. Adelaide continued to be one of Australia’s standout markets through 2025, recording strong annual gains and setting new price benchmarks. Tight supply, steady local employment, and improved borrowing capacity following early-2025 interest rate cuts all played a role.

Regional South Australia also performed well, helped by lifestyle migration and attractive rental yields. However, fewer listings and longer build timelines limited sales activity, keeping competition firm across many locations.

Looking ahead, most forecasters expect growth to continue in 2026, but at a more balanced and sustainable pace. National projections point to mid-single-digit growth as interest rates stabilise, inflation moderates, and construction activity slowly improves. For Adelaide, the fundamentals remain compelling: a diversified economy spanning health, defence, education, and technology, combined with relative affordability compared to eastern capitals, should continue to underpin demand.

Adelaide market trends

By the end of 2025, Adelaide recorded strong annual gains, with house prices up around 10–12% and unit prices closer to 13-15%. Dwelling values reached record highs in the upper $800K range. Rental yields remained respectable, sitting around 3-4% for houses and just over 4% for units, reflecting tight rental conditions and ongoing tenant demand.

Supply remained well below the five-year average, intensifying competition for quality homes and helping prices hold firm despite affordability pressures.

Regional South Australia

Regional markets also continued to grow, though at a slightly slower pace than metro Adelaide. House values rose by roughly 10-11% annually, while units gained around 13–14%, with median prices sitting near $480 – 520K for houses and $390 – $430K for units by late 2025.

Rental yields in the regions outperformed metro averages at around 4.7%, attracting investor interest even as transaction volumes softened due to low stock levels. While internal migration into regional areas has slowed from pandemic-era peaks, it continues to provide steady underlying demand.

The takeaway: While growth in Adelaide will likely be slower and more stable, we expect that Adelaide will retain its reputation as a resilient, growth-leading capital and regional SA will remain appealing for investors seeking yield and lifestyle-driven demand. In both cases, limited supply remains the key constraint supporting prices.

Economic and policy backdrop

Interest rate cuts in early-mid 2025 lifted buyer confidence and borrowing capacity. Most economists expect a “lower for longer” rate environment into 2026, supporting steady demand rather than another surge. Inflation has eased from 2024 highs, reducing some construction and cost-of-living pressures, although building approvals and capacity remain below what’s needed to resolve the housing shortfall quickly.

On the policy front, the South Australian Government’s Housing Roadmap and 2025–26 Budget initiatives—including large land releases, stamp duty relief on new homes, and investment in new growth areas—should gradually increase supply. These measures will take time to flow through, with more noticeable impacts on listings and rental availability expected from late 2026 onward.

What we’re likely to see in 2026

• More balanced—but still tight—conditions: Listings should increase modestly, particularly in outer-metro growth corridors and select regional hubs, easing extreme scarcity without tipping the market in buyers’ favour.
• Units gaining momentum: Affordability constraints will continue to push demand toward townhouses and apartments, especially near transport, universities, and employment centres.
• Rental pressure easing slowly: Rents are likely to remain elevated in early 2026 before gradually moderating as new supply comes online.
• Resilient demand drivers: Adelaide’s affordability, lifestyle appeal, and diverse economy should support steady, sustainable growth rather than boom-and-bust cycles.

Final thoughts

Success in 2026 will come down to preparation and timing. Buyers should organise finance early and be ready to move quickly when quality stock appears. Sellers will benefit from realistic pricing and strong presentation as buyer choice slowly improves. Investors may find opportunities in yield-resilient metro units and well-located regional hubs, while renters should keep a close eye on new developments and affordable housing initiatives as supply begins to broaden over the year.