Adelaide Australia’s top housing market in 2023: PropTrack Home Price Index

Adelaide’s housing market has topped the nation, with a storming run of house price gains marking it as Australia’s biggest earner in percentage terms for 2023.

Adelaide’s surging property market topped the nation in 2023, according to PropTrack.

Adelaide has topped the nation for house price growth in 2023, with the city’s typical residence’s value growing 11.15 per cent to $758,000.

Rising faster than any other capital, it equates to an about $76,000 uplift for the calendar year, according to the latest PropTrack Home Price Index released today.

However thousands of dollars from the gain would have gone to homeowners’ banks, with the cost of paying the mortgage rising from $3223 at the start of 2023 to $3722 by the end of the year.

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Regional South Australian houses outpaced the state capital, with the typical freestanding home rising 11.26 per cent to $419,000.

Unit values in the big smoke rose 8.59 per cent to $535,000.

Nationwide, house prices rose about $58,883 (6.83 per cent) as an average across the state capitals.

PropTrack economist Anne Flaherty said home prices had been “remarkably resilient” as a result of slim pickings for buyers in 2023, with prices hitting a new peak in every one of the past 16 months.

“While there’s no question many mortgage holders have been doing it tough, to date, there has only been evidence of a modest increase in distressed listings,” Ms Flaherty said.

A gloomy interest rate environment did little to slow Adelaide’s housing market. Picture: Tricia Watkinson

Online comparison site Finder figures show that as cash rate hikes hit last year, the average variable home loan’s interest went from 4.29 per cent in January to 5.74 per cent by December.

Contrasted against an 80 per cent loan for a house bought at the start of the year, the figures show Adelaide owners handed $2947 over to the banks more than they would have if rates hadn’t changed.

And the hip pocket pain will continue into the new year, with the monthly mortgage payment for the city’s typical house ending the year $461 above where it started in 2023.

Ms Flaherty added that while there was a slight chance of a rate hike this year, home prices were very likely to grow, with an up to 5 per cent increase forecast by the PropTrack economics team nationwide.

“The factors that drove price growth in 2023 are likely to support a further expansion in prices over 2024,” she said.

“These include strong buyer demand, population growth, relatively limited stock for sale, and a more stable interest rate environment.”

PropTrack economist Anne Flaherty.

Perth and Adelaide are tipped for the best of the growth, followed by Brisbane, with Sydney and Melbourne to maintain a slower rate of growth.

Hobart home values could decline again after a 3.55 per cent drop for houses in 2023.

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