Revealed: SA suburbs where prices are falling

The state’s property market is booming but some towns and suburbs have posted a reduction in their median price over the quarter — was yours among them? Search our interactive.

2022 has been an unprecedented year for the South Australian housing market. While increased cost of living and higher interest rates have done little to cool down the state’s hot property market, some suburbs and towns have bucked the trend.

PropTrack’s latest quarterly home value report shows of the 471 SA towns and suburbs analysed, 51 have recorded reduction of more than 4 per cent in their median house price over the past three months.

The data also shows that, over the past 12 months, only two places across the state have seen their median house values decrease overall.

The report, which used PropTrack’s automated valuation model, considered all houses and units in a suburb to reach a median value. It excluded markets with fewer than 500 observed estimates of property values.

If you are a househunter looking for a bargain, you should look at regional areas. Nine out of the report’s top 10 locations are outside metropolitan Adelaide, with houses in Andamooka recording the greatest tumble in home prices in the last quarter across the state. The median house price slipped by 24.07 per cent to reach $80,517.

The state’s other top losers in the past quarter were Lucindale, which recorded a median house price drop of 17.80 per cent, Keith (13.94), Bordertown (13.62), Coober Pedy (11.21) and Whyalla Stuart (9.76).

Willunga, a historic town located to the south of Adelaide, was the state’s top metropolitan loser for the past quarter. Home values have slipped by 8.98 per cent to record a new median house price of $773,493.

The recent rate hike has increased borrowing costs and reduced maximum borrowing capacities, pushing property prices down.

Glenelg, Panorama, Old Noarlunga and Payneham South have all recorded house price falls of more than 6 per cent despite still recording positive annual percentages of change.

For units, Encounter Bay topped the list with median values decreasing by 23.90 per cent to $401,689.

Also recording double digit percentage drops in unit values are the suburbs of Happy Valley (20.18), Goolwa (16.78), Victor Harbor (11.53) and Christie Downs (10.74).

PropTrack economist Eleanor Creagh said as borrowing capacities are constrained and buyer’s budgets shrink, certain areas have led the price declines.

“The RBA rate hike has increased borrowing costs and reduced maximum borrowing capacities, pushing property prices down. In the period ahead, the level of interest rates will be a key determinant of housing market conditions and the pace and depth of home price falls,” Ms Creagh said.