PropTrack home price index: SA property prices reach new high

People used to escape to the country when property prices got too expensive in the city. But now prices in the state’s regions are climbing at a staggeringly fast rate.

Regional SA’s property market has proved to be the country’s strongest over the past year, new figures reveal.

PropTrack’s latest home price index report shows prices jumped 10.55 per cent in the year ending May 2023 to a median of $384,000 – a new peak.

Regional WA was the market with the second highest annual growth at 6.58 per cent, followed by Adelaide at 5.6 per cent.

Ray White SA chief executive Matt Lindblom said there were two main reasons regional prices had skyrocketed over the past year.

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Ray White's Matt Lindblom. Picture: supplied.

“International and interstate migration is the answer – it’s never been greater,” he said.

“The low cost investments are selling quickly still too.”

Mr Lindblom said savvy investors were snapping up all the cheaper options in regional areas, which was pushing up demand and prices, while the expanding population was putting more pressure on areas that already had a limited supply of homes.

Until more stock was available, Mr Lindblom said prices would continue to climb.

For the month, regional SA’s prices were up 0.15 per cent, while Adelaide’s were up 0.58 per cent.

Adelaide had the equal-third strongest monthly increase across the country, taking it’s median price to a new high of $660,000.

It also maintained its spot as the strongest performing capital city over the past year and since the pandemic began in March 2020.

PropTrack senior economist Eleanor Creagh Picture: supplied.

PropTrack Senior Economist and report author Eleanor Creagh said Adelaide prices had climbed 2.64 per cent so far in 2023.

“The comparative affordability of the city’s homes has seen prices holding up better as interest rates have quickly risen,” she said in the report.

“Low stock levels are also helping to insulate home values, intensifying competition.”