Adelaide home prices are on track to eclipse those of Melbourne by early next year, with values across the city soaring to new highs, a market report has revealed.
PropTrack’s latest Home Price Index shows Adelaide remained one of the country’s top performing markets in October, with the average property now selling for a record $783,000 – 0.43 per cent more than a month ago.
The increase was second only to Melbourne’s monthly growth, while regional South Australia led all markets with a 0.57 per cent increase.
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PropTrack senior economist Eleanor Creagh said since the pandemic onset in 2020, Adelaide home prices grew at almost five times the rate of Melbourne.
According to the index, there’s now only a $10,000 difference in value between the two capital cities.
“Adelaide prices are now up 14.91 per cent year-on-year. Low stock levels intensified competition, and while the number of properties hitting the market has increased, total stock on market remains constrained as new listings are quickly absorbed amid strong buyer demand,” Ms Creagh said.
“The comparative affordability of the city’s homes has contributed to persistently strong growth of recent years, though if current trends persist, values may eclipse Melbourne by the first quarter of next year.
“Adelaide unit values have already surpassed Melbourne.”
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Source: PropTrack
Nationally, prices in the combined capital cities increased 5.85 per cent over the past year, after climbing a further 0.28 per cent in October.
However, price performance remains mixed across Australia.
After six months of falls, the fortunes of Melbourne’s homeowners improved over the past month, with prices jumping 0.49 per cent – the highest monthly growth rate of the capitals.
Perth, meanwhile, recorded a 0.32 per cent growth, while prices in Brisbane and Sydney jumped by 19 per cent.
Prices remained unchanged in Hobart.
Source: PropTrack
Mr Creagh said the data showed homebuyers were out in full force this spring selling season.
“It’s clear resilient housing demand is defying persistent affordability restraints,” she said.
“July’s tax cuts have boosted borrowing capacities and buyers’ budgets, which has supported growth (and) the persistent rise in home values has also motivated many to overcome affordability challenges and transact.
“Though home price growth regained speed in October, elevated interest rates and affordability constraints are weighing.
“Buyers now have more properties to choose from, and uncertainty around the timing of interest rate cuts remains. Still, prices are expected to remain on the rise as the busier selling season closes out.”
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