PropTrack Home Price Index: SA’s housing madness hit a new high in March

South Australia’s boiling hot property market is showing no signs of cooling down with Adelaide recording the highest price growth of all the capital cities in March.

South Australia’s red hot property market is showing no signs of cooling down as we head into a new month.

According to REA Group’s first PropTrack Home Price Index report, while the housing market has slowed down in the rest of the country, the property boom is far from over in SA.

Adelaide has emerged as the best performing capital city in March, outperforming the national average in Australia’s first monthly revised property price index report.

While dwelling prices (houses and units included) across capital cities rose 0.24 per cent in March, Adelaide has recorded 0.84 per cent price growth.

In comparison, markets in Sydney, Brisbane and Hobart have recorded price growth of 0.32 per cent, 0.49 per cent and 0.19 per cent respectively.

Melbourne, Perth and Darwin are experiencing a slowdown with price growth recorded in the negative.

Adelaide has also recorded the second highest annual growth rate at 24.9 per cent.

According to PropTrack economist Paul Ryan, who has also authored the report, there are a number of reasons driving this growth.

“Adelaide and SA as a whole have benefited from the greater incidence of work from home flexibility. More people are able to take advantage of working in SA remotely and that’s generating interest in the housing market,” Mr Ryan said.

“Also there’s a general trend towards owning larger homes in lifestyle locations and SA is seen as a more relaxed pace with natural beauty and tourist locations. The affordability of real estate in SA continues to appeal to people.

“This momentum will continue as housing price growth tends to be quite persistent. So, it is likely that price growth in Adelaide and SA will be strong for at least the next six months.”

Industry experts predict the price growth will be strong in SA in the next six months.

When it comes to the growth in regional areas, the strongest performers in March were regional SA (1.03 per cent), regional NSW (0.76 per cent) and regional Queensland (0.68 per cent).

According to Ray White South Austalia’s CEO, Matthew Lindblom, demand for homes far exceeding supply is also resulting in house prices to surge.

“While the gap between demand and supply is narrowing, it will take some time before it reaches a point where it’s equal. Till then, we will see price growth,” Mr Lindblom said.

“There are many areas, especially in regional SA where there will be substantial price growth. Investors are looking at areas where they can get high yields and so regional areas like Port Augusta and Whyalla are reporting a lot of interest as well.”

The PropTrack Home Price Index is Australia’s first monthly revised residential property price index providing timely and unique insights to help Australians make the most informed property decisions.