South Australia’s property sector continues to show its strength on the national stage, with a new report revealing SA’s median dwelling price has cracked $800,000 and is now $74,000 more than this time last year.
According to PropTrack’s May Home Price Index report, South Australian properties recorded the highest growth over the past year, with combined regional dwellings – both house and unit – prices up 11.6 per cent over the past year, and metropolitan dwelling prices up 10.77 per cent over the past year.
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SA also record the second and third highest growth across the nation over the past month – up 0.3 per cent for metropolitan homes and 0.48 per cent for homes in regional SA – edged out only by regional Queensland homes, which increased by 0.49 per cent.
Adelaide’s median combined dwelling price currently sits at $804,000. In its May 2024 report, PropTrack had Adelaide’s median dwelling value at $730,000, while the data group currently has regional South Australia’s median price at $480,000 – also a record high. This time last year, that was $434,000.
Realestate.com.au economist Anne Flaherty
Report author Anne Flaherty said while national home prices rose in April, the rate of growth has slowed compared to the first three months of the year.
“Should interest rates fall in May, we may see the rate of growth pick up again as borrowing capacities increase and mortgage repayments decline,” she said.
“The rate of price growth is moderating in outperforming cities such as Perth, Adelaide and Brisbane, while underperformers such as Melbourne, Canberra, and Sydney have started to pick up.
“This is lessening the divergence in home price growth seen across the country over the past year.
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Adelaide’s house price has also reached a new high – up 0.29 per cent for the month and 10.7 per cent for the year to $861,000 – while metropolitan units have increased 0.41 per cent over the past month and 11.32 per cent over the past 12 month to $608,000.
Regionally, the median house price sits at $490,000, and the median unit price $425,000.
Since the start of the pandemic, March 2020, metropolitan Adelaide’s combined dwelling price has increased by 85.1 per cent, while regional homes have increased by 88.6 per cent.
Home values are up across Adelaide. Picture: Brenton Edwards
Turner Real Estate managing director Lachlan Turner said in the current economic climate, many had turned to property as a solid investment.
“In times of economic uncertainly, people tend to make tangible, appreciating assets more of a focus and indeed, we have seen a rise in the price of gold,” he said.
Real estate is also real and an appealing safe haven for investors, making it an excellent asset.”
Lachlan Turner, Managing Director, Turner Real Estate. Pic: supplied.
According to the report, home values in the Barossa-Yorke-Mid North area have increased over the past 12 months by 14.11 per cent to a $490,000 median, while dwellings in Adelaide’s west and north regions have increased 13.02 per cent and 11.49 per cent respectively to medians of $864,000 and $699,000.
Ms Flaherty said the market was eagerly awaiting the result of this weekend’s federal election.
“With housing affordability a key issue at the upcoming federal election, both Labor and the Coalition have announced policy incentives for first home buyers,” she said.
“As a result, many of these buyers may be biding their time to get into the market after the election and the launch of these policies.
“Whichever party is elected, the combination of increased first home buyer incentives, lower interest rates, and supply side challenges are expected to contribute to even higher property prices in 2025.”
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