South Australia has again proven to have the strongest-performing property market in the country, as prices across the state continue to climb, and regional SA notches up the nation’s biggest growth over the past month.
REA Group’s June Home Price Index reveals Adelaide’s new median house price now sits at $1.025m.
This is up 0.3 per cent over the past month and 13 per cent, or $123,500 over the past year.
According to the report, home (combined dwelling) prices across metropolitan Adelaide have climbed by 0.3 per cent over the past month to $950,000.
This represents an increase of $118,900 over the past 12 months, and 85.3 per cent over the past five years.
Adelaide’s median house value has surpassed Melbourne. Picture: Brenton Edwards
Report author, REA Group senior economist Angus Moore said Adelaide has had a remarkable run on the back of the Covid pandemic.
“Prices have more than doubled since the start of 2020,” he said.
“A few things have been driving that.
“Population, or interstate migration – which from South Australia is typically negative, in that more people typically leave than move in – swung the other way during the pandemic, and that obviously drove a lot of demand for homes and pushed up prices.
“Though price growth has continued pretty briskly in recent years despite that fading away. “Prices are still up 13 per cent in the past year, which is strong growth by any measure.
“There’s also been relatively limited stock on market in Adelaide … and that’s probably supporting price growth at the margin.
“Affordability in South Australia now is really quite strained.”
MORE NEWS
$660k Aussie home loan record forces first-home buyer rethink
The statistic that should terrify all homeowners
Southern Ocean Lodge link to Adelaide development revealed
Shock result as council forcibly sells 57 properties to recoup unpaid rates
This 100 pound Adelaide home just sold for how much?
How a simple change at the supermarket can get you into a home faster
PropTrack economist Angus Moore pictured
Adelaide’s unit market also delivered strong results.
According to the report, Adelaide’s median unit price was up 0.6 per cent during May, and is up 15.3 per cent – or $96,800 – over the past year, taking it to a record high of $709,000.
Mr Moore said Adelaide was not the affordable market it once was, despite the fact it was still a healthy market.
“With such strained affordability, and with rates rising, at the margin we might expect to see units holding up a bit better than detached houses, because they tend to be a bit more affordable,” he said.
“That relative affordability story was a really important part of the driver in sort of 2020 to 2023 – that’s much less true today.”
MORE NEWS
How much you need to save to buy in every Australian suburb
This 100 pound property just sold for how much?
Block fever sparks mad rush for rundown homes
Aussie island property selling for a steal – but there’s a catch
Regional SA values continue to shine, recording the greatest price increase in the country. Dwelling values were up 0.7 per cent for the month and 13.1 per cent or $57,400 for the year and 96.2 per cent over the past five years.
Its combined dwelling median is $515,000.
Interestingly, regional SA’s median house price growth mirrored that of combined dwellings for both the month and year, with values now sitting $58,400 higher than this time last year at $523,000.
Regional units continue to offer a more affordable entry point at $477,000, despite gains of 0.4 per cent over the past month and 13.8 per cent – or $64,200 – over the past year.
Harcourts’ James Packham. Picture: Supplied
Harcourts Packham Property managing director James Packham said SA’s market was healthy.
“South Australia’s property market continues to show strong resilience, with Adelaide values sitting at record highs and demand remaining steady across both established suburbs and more affordable price points,” he said.
“Adelaide dwelling values continue to record solid annual growth, supported by limited supply, strong buyer competition and ongoing rental pressure.”
– with Sophie Foster
English (US) · 