Adelaide home values have continued their climb, with a new report showing Adelaide’s median house price now sits just $4000 off a median house price of $1m.
PropTrack’s February Home Price Index, released today, shows Adelaide’s median combined dwelling value has climbed almost $110,000 over the past year to a record high, with experts saying there could be more growth yet to come, even as homeowners brace for a potential February interest rate hike.
According to the report, Adelaide’s house price climbed to a new high in January – up 1 per cent for the month, and 13.6 per cent, or $118,700 to $996,000 – while metropolitan units have increased 0.3 per cent over the past month and 14.6 per cent or $89,200 over the past year to $686,000.
Adelaide combined dwelling prices climbed 0.9 per cent over the past month – the highest in the nation – to an $916,000 median.
This was nine times the national capital city average monthly growth of 0.1 per cent.
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The growth rate in regional SA, which has been the nation’s standout performer in recent years, was equally strong at 0.7 per cent for the month – more than double the 0.3 per cent recorded nationally.
This takes regional median dwelling values to $495,000, while regional house prices have risen 0.8 per cent for the month to $501,000.
Median regional unit values came in at $460, after recording 13.1 per cent growth over the past year, despite a 0.3 per cent drop for the quarter.
REA Group senior economist Angus Moore
REA Group senior economist and report author Angus Moore said he expected Adelaide’s median to crack the $1m mark next month.
“Adelaide’s been growing pretty briskly and there’s no indication that momentum is fading in any serious way,” he said.
“That particular milestone doesn’t necessarily mean a big change for affordability, but South Australia is a much less affordable market than it used to be.
“It’s seen enormously strong growth over the last six years, and what that means is the affordability has deteriorated very significantly, at record lows for the state, no matter how you cut it on our property housing affordability index, it’s the second least affordable state in Australia, sitting only just behind New South Wales.
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“The fact that we’re continuing to see pretty strong growth is not going to improve that picture.
“We’re certainly expecting Adelaide to continue to grow this year, whether it exceeds Brisbane and Perth, hard to say. But we’d expect those three cities to continue to be fairly solid.
Adelaide home values are up. Picture: Supplied by Knight Frank
Over the past five years, metropolitan Adelaide’s combined dwelling price has increased by 93.4 per cent, while regional homes have increased by 96.7 per cent.
According to the report, Adelaide’s north was the state’s strongest region for value growth, with its median home price up 15.14 per cent, ahead of homes in Adelaide’s west and south, with recorded 14.28 per cent and 14.14 per cent increases respectively.
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Real Estate Institute of South Australia chief executive officer Andrea Heading said Adelaide’s market had performed strongly, particularly in the prestige market.
“It is remarkable to see how quickly the number of suburbs exceeding the $1 million median has grown,” she said.
“This shift reflects not only demand for premium homes, but also the ripple effect of price growth across our city and lifestyle regions
REISA CEO Andrea Heading. Supplied
“Adelaide continues to outperform expectations.
“Our growth has been strong but measured, which is the hallmark of a sustainable market.”
– with Tim McIntyre
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