Adelaide’s property market is continuing to go from strength to strength with steady growth in both home and unit prices taking both to record highs.
According to the latest PropTrack data, Adelaide’s combined median home price has surged by 15.12% over the past year, bringing the average home price to $768,000 as of August 2024. This marks Adelaide as the second-highest performing capital city in Australia, only behind Perth, where property values increased 23.24% in the same period.
Consistent growth
The city’s property market has now experienced 24 consecutive months of price increases, during a period where interest rates remained high.
In the past month alone, Adelaide’s combined dwelling values have increased by 0.45%, and the housing market continues to show signs of strength. Adelaide’s house prices rose 0.49% for the month, pushing the median price to an all-time high of $816,000. Units have also performed well, with their median value rising 0.19% in the last month to $603,000, representing a 12.36% increase over the past 12 months.
This growth has been particularly notable in Adelaide’s northern and western suburbs, where combined dwelling values surged by 19.41% and 16.55%, respectively, over the past year.
These regions have outperformed the citywide average, on the back of growing demand for property in established areas.
Affordability and lifestyle driving demand
The demand for property in Adelaide has been driven by a range of factors, including affordability, lifestyle, and interstate migration. Adelaide’s relatively affordable housing market compared to cities like Sydney and Melbourne has made it an attractive option for buyers looking to escape the high costs of larger capitals.
Many buyers from other states are choosing Adelaide for its lifestyle benefits, such as its proximity to beaches, parks, and a more relaxed pace of life.
Buyers agents in Adelaide have reported a significant uptick in interest from interstate clients, as more people seek to capitalise on Adelaide’s affordability and attractive lifestyle offerings.
Adelaide’s affordability compared to other capitals has also driven investor interest. Although national interest rates have risen to their highest levels in more than a decade, PropTrack analysts suggest that this uncertainty may be fading, potentially giving buyers and investors more confidence to act.
Analysts also predict that Adelaide’s market is likely to continue growing as more investors are expected to return to the market, lured by rising rental yields. This trend is expected to benefit not only investors but also renters, as an increase in investor activity could boost the supply of rental properties.
Supply and demand imbalance continues
One of the key factors driving price increases is the ongoing imbalance between supply and demand. The number of homes being sold continues to exceed the number of new listings coming to market, creating competition among buyers and driving up prices.
However, with the spring selling season now underway, experts predict that the gap between supply and demand could begin to narrow slightly. The warmer months typically bring an increase in listings, giving buyers more options to choose from, although the market is still expected to remain highly competitive.
This high level of competition has led many potential homeowners and investors to turn to buyers agents in Adelaide to help secure properties before they hit the broader market.
Regional sees steady growth
Regionally, South Australia’s housing market has seen mixed results. While regional areas saw a slight decline of 0.2% in combined dwelling values in August, the annual growth figures paint a more positive picture, with a 9.28% increase in regional dwelling values over the past year.
The median house price in regional South Australia now sits at $444,000, up 9.48% over the past 12 months. This suggests that while the immediate monthly figures show some cooling, the regional market remains on a growth trajectory.
A professional Adelaide buyers agency or an Adelaide buyers agent can provide tailored advice and assistance, making the process less daunting.
