Property

Why Adelaide Still Looks Like Australia’s Quiet Achiever

May 27, 2025

Adelaide Auction Clearance Rates Signal Resilient Confidence

1. Why we watch auction clearance rates

Clearance rates are the property market’s “pulse” – a quick read on buyer demand, seller expectations, and access to finance. When rates sit above ~60 per cent, the market is usually considered balanced-to-seller-friendly; slip under 50 per cent for long and prices can soften.


2. The national pulse

Across the combined capitals, last week’s preliminary clearance rate came in at 68.8 % from 1,835 auctions – easing from +70 % highs earlier in May but still above the 2025 year-to-date average of 68 % CoreLogic Australia.

Why the slight dip? A jump in listings (particularly in Melbourne) and buyers taking a breather while they digest the RBA’s second 0.25 % rate cut to a 3.85 % cash rate on 20 May The Guardian.


3. Adelaide under the hammer

  • 132 homes went to auction across Greater Adelaide last week – the busiest week since Easter.
  • The preliminary clearance rate was 64.1 %, down from 66.7 % the week prior, but only a touch below the year-to-date average of 67.4 % CoreLogic Australia.
  • Realestate.com.au’s final numbers for the week ending 25 May showed a similar 65 % clearance from 98 reported results Realestate.


Those mid-60 % readings tell us the South Australian market remains healthy but disciplined; buyers still show up, yet they’re negotiating harder on price.


4. What’s driving Adelaide’s results?

Tailwinds

  • Affordability edge – Adelaide’s median price is still ~$300k below Sydney, luring interstate investors and first-home buyers.
  • Population growth – SA is tipped to welcome ~22,000 extra residents in 2025, tightening rental markets and underpinning demand
  • Interest-rate relief – The May cut lifts borrowing capacity by roughly 3-5 %.

Headwinds

  • More stock hitting the market as would-be sellers seize the post-rate-cut momentum
  • Slightly higher vendor discounting and days-on-market as buyers shop around (40 days vs 30 a year ago)
  • Global uncertainty (think Trump-era tariffs) still rattles consumer confidence.


5. The outlook: more grind than boom – but still bright

  • Baseline scenario (no further rate cuts): SQM Research expects Adelaide dwelling values to rise 4–8 % over 2025 – outperforming most capitals adelaidenow.
  • Rate-cut-plus scenario: Two extra RBA cuts could push Adelaide’s gains into double-digit territory (up to 14 %) on tighter rental markets and renewed investor activity adelaidenow.
  • Current trajectory: PropTrack’s April index already has Adelaide up 10.8 % year-on-year, reclaiming the crown for strongest capital-city growth PropTrack.
  • Long-run context: Over the past 20 years Adelaide’s house prices have surged 175 % – the largest increase of any Australian city adelaidenow.


In short, expect steady (not runaway) capital growth, fuelled by tight supply, population inflows and a relative affordability sweet spot.


6. Practical take-aways for investors & upgraders

  1. Run the numbers again: Even a 0.25 % rate cut can add ~$25–30k to average borrowing capacity. Use a loan calculator and refresh your pre-approval before competition heats up.
  2. Focus on scarcity: Character homes near the CBD and high-amenity middle-ring suburbs (think Prospect, Unley, West Croydon) keep outperforming in softer patches.
  3. Add value, don’t chase headlines: Clearance rates in the mid-60s reward buyers with vision – cosmetic renos and small-lot subdivisions still stack up when purchased below replacement cost.
  4. Be auction-ready: With two-thirds of homes still selling under the hammer, sharpen your bidding strategy, line up building-and-pest inspections early, and set a walk-away price.
  5. Plan for multiple outcomes: Build a 1 % buffer into serviceability for any curve-balls, and stress-test cash flow assuming no further rate cuts.


7. Ready to turn improved serviceability into serious assets?

Let’s map your next move – from finance prep to suburb selection and deal analysis.


🔗 Book a free Time to Take Action call and get market ready with a personalised property strategy.


Knowledge is power, but action builds portfolios. See you at auction – I’ll bring the coffee.