Adelaide’s property market is reaching unprecedented price levels

Adelaide home prices have continued to rise, with a new report showing Adelaide’s median house price now sits just $4000 short of the $1m median house price.

PropTrack’s February Home Price Index, released today, shows Adelaide’s combined residential value has risen by almost $110,000 over the past year to a record high, with experts saying there could be more growth to come, as homeowners brace for February’s interest rate hike.

According to the report, the price of Adelaide’s house increased in January – up 1 percent in the month, and 13.6%, or $ 118,700 to $ 996,000 – while the units of the capital cities increased by 0.3 percent in the last month and 14.6 percent or more than $ 80.

Combined house prices in Adelaide rose 0.9 per cent last month – the highest in the nation – to a median of $916,000.

This was nine times the national capital’s average monthly growth of 0.1 percent.

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South Africa’s regional growth rate, which has been the nation’s top performer in recent years, was similarly strong at 0.7 percent for the month – more than double the 0.3 percent recorded nationally.

This takes median residential prices to $495,000, while regional house prices rose 0.8 percent in the month to $501,000.

Average regional unit prices reached $460, after recording 13.1 percent growth last year, despite a 0.3 percent decline in the quarter.

REA Group chief economist and report writer Angus Moore said he expected the Adelaide consultant to break the $1m mark next month.

“Adelaide has been growing rapidly and there is no sign of the momentum slowing down in any way,” he said.

“That milestone doesn’t necessarily mean a big change in buying, but South Australia is a more affordable market than it used to be.

“It’s seen very strong growth over the last six years, and that means affordability has dropped significantly, the lowest nationally, no matter how you cut it in our housing affordability index, it’s the second least expensive state in Australia, just behind New South Wales.

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“The fact that we continue to see strong growth will not improve that image.

“Certainly we expect Adelaide to continue to grow this year, even if it surpasses Brisbane and Perth, it’s hard to say. But we expected those three cities to continue to strengthen.

Adelaide house prices have risen. Photo: Provided by Knight Frank

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Over the past five years, the combined house price of the city of Adelaide 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 price growth, with its house price up 15.14 per cent, ahead of Adelaide’s west and south, which recorded 14.28 per cent and 14.14 per cent respectively.

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Chief executive of the Real Estate Institute of South Australia, Andrea Heading, said Adelaide’s market had performed well, particularly in the luxury market.

“It’s amazing to see how quickly the number of properties under $1 million has grown,” he said.

“This change not only reflects the need for luxury homes, but also the negative impact of rising prices on our cities and neighborhoods.

REISA CEO Andrea Heading. It is provided

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“Adelaide continues to outperform expectations.

“Our growth has been strong but measured, which is a sign of a sustainable market.”

– with Tim McIntyre