Homeownership is slipping further out of reach for young South Aussies with Adelaide property prices again pushing ahead of other capital cities.
PropTrack’s latest Home Price Index shows Adelaide home prices rose 0.33 per cent month-on-month to $7953,000 in February, with combined dwelling values up 11.91 per cent over the past 12 months.
This represents an annual increase of $84,395.
Adelaide now ranks as the nation’s third most expensive capital city, behind Sydney and Brisbane, which recorded price increases of 0.50 per cent and 0.29 per cent in February, to reach new price highs of $1.094m and $870,000, respectively.
REA Group senior economist Eleanor Creagh said Adelaide remained one of the top performing capitals over the past year.
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“The comparative affordability of the city’s homes has contributed to persistently strong growth of recent years,” she said.
“However, the pace of price growth has slowed in line with affordability deteriorating significantly through this period.”
Looking ahead, Ms Creagh said further price growth was expected as more interest rate cuts loomed.
“Poor affordability will likely dampen the uplift in prices compared to prior easing cycles, resulting in the pace of home price growth trailing the strong performance of recent years,” she said.
PropTrack Home Price Index for February, 2025
Adelaide house and unit prices also reached new highs in February.
Entry-level houses now sell for $849,000, up 0.34 per cent to January figures, while unit prices rose by 0.18 per cent, to a new metro-wide median of $592,000.
Nationally, capital home prices lifted 0.40 per cent in February and 0.28 per cent across regional areas.
Liam McDevitt of Ray White Walkerville said the latest Index figures provided little in terms of market confidence for buyers.
“When will it end? It’s hard to say when it will be because the (February) interest rate cut is not really going to have an impact on prices and I don’t think we will see that unless we maybe get three or four drops,” he said.
“It’s not just first homebuyers that are struggling to get into the market. It’s people that are already homeowners that are having to sacrifice, or compromise, on their needs and wants for the next home because they might have something that happened in the family or personal life that puts them into a position where they have to sell and move on.”
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Amanda and Bradley Tarrant are selling their home at 36 Angove Park Drive, Tee Trea Gully. Picture: Brett Hartwig
Amanda and Bradley Tarrant, who are selling their Tea Tree Gully home at 36 Angove Park Drive to help finance their next property, said market conditions were tough when compared to six years ago.
The couple purchase the five-bedroom, three-bathroom poolside home in 2019, unaware Covid would hit, but are now hopeful that citywide price hikes could work in their favour.
According to PropTrack, house prices in Tea Tree Gully have spiked by 84 per cent over the past five years to a current median of $805,000.
“Because we’re looking to upsize to accommodate multigenerational living, we knew that we would have to be in a position where we would have to sell our current home to make that next purchase possible,” Ms Tarrant said.
“The pricing (of homes) is exceptionally different to what it was five years ago. I don’t think anyone really envisaged the impact Covid would have on the property market, particularly in South Australia.
“When you’re in a market like this, you have the disadvantage of having to compete for property but, also, if you’re selling your own home, then that should be an advantage to yourself.”
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