Adelaide home price growth tops nation for second consecutive month

Adelaide is again leading the nation in property price growth, with the average homebuyer now paying $35k more than a year ago, new market data shows.

Adelaide’s property market has maintained its top spot as the strongest performing capital city despite the Reserve Bank of Australia’s string of rate hikes, new market data reveals.

According to PropTrack’s monthly Home Price Index, Adelaide property prices rose 0.45 per cent in June, the second largest monthly growth of any market nationally

The city’s median property value now stands at $666,000, with prices up 5.27 per cent – or $35,098 – compared to a year ago.

Record annual price growth of 8.93 per cent was also recorded for regional SA.

Meanwhile, the national annual median price dropped by 0.11 per cent, while the capital city median rose by 0.06 per cent.

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PropTrack Economist Angus Moore said continuous price growth had been driven by limited supply of new properties, strong demand, solid auction clearance rates, and restricted rental stock.

He said June, unlike other markets in Australia, was Adelaide’s prime selling season.

“Adelaide has been a very strong market over the past year … and its relative affordability compared to other capital cities has made it very attractive to buyers,” he said.

“Adelaide has also held up very well in the face of higher interest rates, so it’s (price growth) story is really one of high demand.

“That said, interest rates will continue to be a headwind for prices, but unlike in 2022, the peak of interest rates is likely close.”

Real Estate Institute of South Australia chief executive Andrea Heading said Adelaide’s continuous price growth was good news for sellers.

Adelaide has recorded the strongest house price growth for June, according to PropTrack. Picture: AAP Image/Bianca De Marchi.

“What we’re noticing during open home inspections is that more neighbours are attending to have a look for research purposes,” she said.

“They are starting to realise the true value of their own properties and how much equity they have built up and that now is a good time to sell.

“It’s also quite a competitive market as we have a low supply of homes available so further price increases will get more people to consider selling up, especially downsizers.”

Ray White South Australia chief executive Matthew Lindblom said he worried the latest price growth would make it harder for first homebuyers to enter the market.

“Is it sustainable for house prices to keep up and lock people out of the market? I don’t think so as it’s not creating a fair environment for all homebuyers,” he said.

“We have a backlog of international migrants coming to Australia so everyone is competing for housing … which is driving up prices.

“So what we really need is an increase in (housing) supply.

“We need people to sell or for the government to build more houses … it’s just not sustainable in the current climate.”