PropTrack report shows SA house prices hit record high in February

SA’s house price climbed to a historic high in February, with regional SA the hottest market in the country. Find out which areas are our state’s top-performing.

South Australia has emerged as the golden child of the national property market, with a new report revealing Adelaide as the strongest performing capital city over the past year.

According to the latest PropTrack Home Price Index report, Adelaide home values reached a new peak in February, climbing 0.44 per cent to a record high of $648,000. Regional South Australia home prices also hit a new high – up 0.6 per cent to $380,000.

Adelaide is leading the nation for home value growth. Picture Emma Brasier

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Comparatively, home values across Australia’s combined capital cities grew by 0.26 per cent, with Sydney up 0.36 per cent, Melbourne up 0.18 per cent and Brisbane up by 0.12 per cent.

Adelaide’s was the strongest increase of any capital city, with prices sitting 7.87 per cent higher than last February – a result driven by our comparative affordability and low stock levels.

The report also showed the total number of properties listed for sale was down more than 30 per cent on the previous five-year average.

PropTrack senior economist and report author Eleanor Creagh said sellers were benefiting from low competition with other vendors, as buyers vie for available stock.

Tanunda’s iconic main street. The Barossa region was the state’s top performer for value growth. Picture: The Australian/Morgan Sette

“The constrained level of properties available for sale is putting a floor under home prices and has concentrated buyer demand,” she said.

She said Adelaide’s property market had enjoyed a fantastic year.

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

“Low stock levels are also helping to insulate home values, with buyer demand per listing sitting at a record high in January 2023.”

Adelaide’s southern suburbs are performing strongly. Picture: NCA NewsWire / Brenton Edwards

Regional home prices now sit 11.85 per cent above where they were this time last year.

Barossa, Yorke and the Mid North was the top performing statistical division, with median home values rising 12.72 per cent over the past year to $367,000.

Homes in the state’s South East are up 12.05 per cent over the same period to $425,000, while homes in Adelaide’s south region – which stretches from Cross Rd to Sellicks Beach – are up 8.42 per cent to a $671,000 median value.

According to the report, home values in Adelaide now sit 44.7 per cent higher than at the start of the pandemic, while regional SA homes are worth 44.5 per cent more.

Real Estate Institute of South Australia chief executive officer Andrea Heading said while the market was performing strongly, there were still affordable options.

“We are expecting a return to a more balanced market at some stage,” she said.

“If you’re trying to get into the market, do your due diligence in the area you want to buy into, but also be prepared that you might need to cast your net out a little wider.”