Adelaide homes have continued their display of strength on the national stage, with a new report revealing they recorded the second-highest growth of any capital city over the past 12 months.
According to PropTrack’s August Home Price Index, Adelaide combined median home prices climbed 15.12 per cent over the past year – up 15.12 per cent to $768,000.
They followed only Perth, where values were up 23.24 per cent over the same period.
Adelaide combined dwelling values were also up 0.45 per cent over the past month – eclipsed by Perth at 0.79 per cent and Hobart at 0.63 per cent.
This is Adelaide’s 24th consecutive monthly increase.
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Adelaide homes also recorded the second-highest median price increase since the pandemic – up 74.9 per cent to nip at the heels of Perth, where values are up 75.8 per cent.
Adelaide house prices have also risen – up 0.49 per cent for the month and 15.45 per cent for the year to a record $816,000 median.
Turner Real Estate managing director Lachlan Turner said Adelaide’s market had performed strongly.
“It’s noteworthy that the lower quartile of the market has risen 20.9% over the last year compared to a 13.3% increase in the most expensive quartile,” he said.
“If Adelaide’s dwelling value continues at its current rate it’s on track to overtake Melbourne’s average dwelling value – a national first between these two states.”
AUGUST HOME PRICE INDEX
Adelaide – all dwellings |
Regional SA – all dwellings |
|||
| Monthly growth % | 0.45 | Monthly growth % | -0.2 | |
| Annual growth % | 15.12 | Annual growth % | 9.28 | |
| Median value | $768,000 | Median value | $436,000 | |
Adelaide – houses |
Regional SA – houses |
|||
| Monthly growth % | 0.49 | Monthly growth % | -0.21 | |
| Annual growth % | 15.45 | Annual growth % | 9.48 | |
| Median value | $816,000 | Median value | $444,000 | |
Adelaide – units |
Regional SA – uni |
|||
| Monthly growth % | 0.19 | Monthly growth % | n.a | |
| Annual growth % | 12.36 | Annual growth % | n.a | |
| Median value | $603,000 | Median value | $389,000 | |
Source: PropTrack
According to the report, it was good news for unit owners too, with a record median price of $603,000 coming off the back of a 0.19 per cent monthly increase and a 12.36 per cent uptick over the past 12 months.
Those in Adelaide’s northern suburbs experienced the biggest value growth, with combined dwelling values up 19.41 per cent over the past year, just ahead of those in the western suburbs, where homes appreciated by 16.55 per cent over the same period.
Mr Turner said Adelaides supply and demand issue was set to turn with the advent of the spring selling season.
“The supply and demand issue remains critical with more houses being sold than are being listed which is expected to continue driving up home values into the end of the year,” he said.
“However there is good news for buyers – the gap between sellers and new listings is starting to narrow as vendors remain active in the market.”
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Lachlan Turner, Managing Director of Turner Real Estate.
Regionally, combined dwellings are down 0.2 per cent for the month but up 9.28 per cent for the year to a $436,000 median.
Regional house prices are also down for the month – -0.21 per cent – but up 9.48 for the past 12 months to a $444,000 median.
PropTrack economic analyst Megan Lieu said though interest rates are at their highest level in over a decade, they were tipped to fall by early next year.
“The waning uncertainty over interest rates is likely boosting the confidence of buyers, including that of investors,” she said.
“We expect more investors to return to the market in the coming months as rents rise further and yields increase.
“While this trend is beneficial for investors, renters may also benefit indirectly from the rise in investor activity, as it signifies an increase in the supply of properties available for rent.”
