South Australia’s property sector continues to kick goals, with a new report revealing SA’s median dwelling price has risen again to a record high, sitting at $57,000 more than this time last year.
According to PropTrack’s June Home Price Index report, South Australian regional properties recorded the highest growth over the past year, with combined regional dwellings – both house and unit – prices up 11.83 per cent over the past year, and metropolitan dwelling prices up 11.04 per cent over the past year.
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Adelaide properties also recorded the second-highest growth for combined dwellings over the past month – up 0.52 per cent – trailing only Melbourne, where home values increased by 0.79 per cent.
Adelaide’s median combined dwelling price currently sits at $805,000. In its June 2024 report, PropTrack had Adelaide’s median dwelling value at $748,000, while the data group currently has regional South Australia’s median price at $486,000. This time last year, that was $443,000.
REA Group senior economist Eleanor Creagh
REA Group senior economist and report author Eleanor Creagh, said Adelaide’s growth was underpinned by improved buyer sentiment and renewed confidence following interest rate cuts.
“Lower interest rates have lifted borrowing capacities and boosted buyer demand,” she said.
“And with further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions.”
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Adelaide’s house price remains at its record high – up just 0.57 per cent for the month and 11.14 per cent for the year to $861,000 – while metropolitan units have increased 0.1 per cent over the past month and 10.26 per cent over the past 12 month to $612,000.
Regionally, the median house price sits at $498,000, and the median unit price $405,000.
Since the start of the pandemic, March 2020, metropolitan Adelaide’s combined dwelling price has increased by 87.3 per cent, while regional homes have increased by 89.8 per cent.
Home values are up across Adelaide. Picture: Brenton Edwards
Turner Real Estate chief executive officer Emma Slape said entering the market was challenging for many, and that, unfortunately that didn’t look like easing any time soon.
“There will need to be more stock available before we see the heat drop away from the stock that is under $1m,” she said.
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“There is no doubt it’s really hard to crack into the market and rising house prices do make bridging that gap harder.”
“However, the stability in housing as an investment, including as an owner occupier should give people faith that once they are able to take that first step, there will be positive long-term financial gain and stability.”
Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin
Social media specialist Caitlin Slater, 35, who recently submitted an offer on a property being sold by Turner Real Estate sales agent Brandon O’Connell, said the buying process was daunting.
“It’s mind-boggling to think that nowadays half a million dollars is only going to get you a two-bedroom unit with barely any backyard, especially considering my parents paid less than $200,000 for quite a big property in the north, so it’s a rude shock, that’s for sure,” she said.
“You do all the right things, you go to uni, you get the degree, you get a good job just to find out you can afford a shoebox – it’s scary.”
Despite the high cost of entry, Ms Slater said property was still a good investment and buying was the right move for her.
“I have no doubt prices are going to go upwards, I just don’t think there’s a world in which prices in the long term will go backwards,” she said.
Hopeful househunter Caitlin Slater submits an offer to Turner Real Estate agent Brandon O’Connell. Picture Emma Brasier
According to the report, home values in the Barossa-Yorke-Mid North area have increased over the past 12 months by 12.92 per cent to a $495,000 median, while dwellings in Adelaide’s north and the state’s southeast regions have increased 11.98 per cent and 11.82 per cent respectively to medians of $703,000 and $545,000.
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