Adelaide’s median house price surges to nearly $560,000 in strongest growth in 29 years

Adelaide house prices have soared to unprecedented levels, recording the strongest monthly increase in nearly three decades.

Adelaide’s house prices have recorded their strongest monthly increase in nearly three decades outperforming nearly all capital cities.

CoreLogic's Hedonic Home Value Index report’s Adelaide’s median house price increased by 2.5 per cent – or $13,500 – last month, to $558,179 – a result not seen in 29 years.

In the past three months Adelaide’s median house price has increased 6.5 per cent.

The performance was second only to Brisbane where property owners have seen their house values increase by 2.9 per cent last month, and 7.4 per cent in the past three months, to $662,199.

Adelaide’s homeowners have experienced a 26.5 per cent annual increase in the value of their assets.

House prices in regional SA also surged by 2.3 per cent last month, behind regional NSW at 2.4 per cent and regional Tasmania at 2.5 per cent.

Nationally median house prices were up 1.3 per cent in November, the weakest growth in 10 months.

Adelaide and Brisbane were the only cities to not record a slowdown in house prices, according to the CoreLogic analysis.

Adelaide’s housing market is among the hottest in the nation, increasing to $558,179.

CoreLogic’s research director Tim Lawless said fewer Covid-19 lockdowns, “less pressing” housing affordability and “positive” migration into Adelaide was “fuelling demand”.

“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective,” he said.

Last weekend Adelaide recorded 299 auctions, the state’s busiest auction week since CoreLogic began recording the data in 2008, implying strong activity in the SA market.

In the four weeks to November 28, houses were for sale across Adelaide were 32 per cent lower than the five year average.

“Advertising inventory remains low but is increasing across most regions,” the CoreLogic report says.

“A further increase in available supply should help to take more heat out of the market as buyers have more choice and less urgency.

“Vendors may need to adjust their pricing expectations if homes take longer to sell.”

Adelaide’s unit prices increased 1.4 per cent last month to $380,058, second only to Canberra with a 2.1 per cent increase, according to the CoreLogic report.

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