First published 28 Oct 2026, 2:30pm
Adelaide land prices have once again climbed above Melbourne’s, new data shows.
Adelaide land prices have climbed back above Melbourne’s after falling below them for a brief six-month period.
New research by Oliver Hume Property Group reveals the city’s median land price rose 6.4 per cent over the September quarter – and 19.1 per cent over the year – to $415,000, slightly above Melbourne’s $410,500.
Adelaide land prices surpassed Melbourne’s for the first time earlier this year when the median rose 11.3 per cent in the June quarter to $417,500.
Melbourne’s at the time was $406,000.
Oliver Hume chief economist Matt Bell.
The median fell back below Melbourne’s the following quarter – to $390,500 compared to the south eastern capital’s $404,000 – as supply constraints worsened and a cooling established market dented confidence.
Despite the rises that have lifted Adelaide prices back above Melbourne’s in the September quarter, sales fell 2.1 per cent to 283 over the past three months.
It is less than half of the 604 sales recorded in the same period last year and the second lowest quarterly reading since 2020.
The quarterly result was weighed down by a weak July, with sales rising in August and September.
Oliver Hume chief economist Matt Bell said low transaction volumes had not translated into an easing of land prices, with constrained supply continuing to put pressure on buyers.
“One of the striking features of Adelaide’s land market is that sales are running at less than half the level of a year ago, yet the median price has continued to rise,” he said.
“That points to an ongoing imbalance between the amount of land available and the demand for new housing.
“Buyers face a much higher entry price than 12 months ago, and that will inevitably test affordability.
“Pressure on household budgets due to economic factors including interest rate increases has yet to result in land price corrections.”
Ray White Group head of research Vanessa Rader.
Prices rose in the local government areas of Gawler, Light, Mount Barker and Playford during the September quarter with Onkaparinga the exception – prices dipped 3.7 per cent to $486,500 – although its median remains 36.8 per cent above where it was at the same time last year.
Meanwhile, farmland across the state is in a similar situation.
Ray White Group head of research Vanessa Rader said prices were on the rise in SA while sales were tracking lower.
She said like Victoria, SA had benefited from a turnaround in seasonal conditions and strong rainfall, which had lifted confidence after successive dry years and therefore prices too.
“South Australia benefited from the same change in fortunes, edging 1.4 per cent higher (over the year) to $9757/ha as growers positioned for a strong winter crop,” Ms Rader said.
“Western Australia was the only state to lift volumes, rising 12.1 per cent to 778 sales, while Victoria (1157) and South Australia (536) both recorded their lowest annual totals in more than 15 years.”
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