SA property prices climb to new high in PropTrack’s latest Home Price Index data

Adelaide’s property values have continued their climb, while Melbourne’s has stalled. Find out SA’s new record median and when it could pip our interstate neighbours.

South Australia’s property sector continues to show its strength on the national stage, with Adelaide recording the second-highest growth of any capital city over the past month and year, and regional SA recording the highest value growth over the past 12 months.

PropTrack’s May Home Price Index, released today, shows Adelaide’s median combined dwelling price rose 0.55 per cent month-on-month to a record high of $730,000 in April, with combined dwelling values up 13.99 per cent on this time last year.

In its April 2023 report, PropTrack had Adelaide’s median dwelling value at $723,000.

This represents a monthly increase of $7000.

Melbourne’s $805,000 median home price recorded annual growth of just 1.1 per cent, PropTrack revealed.

And if price trends continue in Adelaide and Perth, their standard property values could eclipse Melbourne by 2025 if prices in those cities continued to see annual growth of 13.99 per cent and 20.16 per cent respectively.

Home prices in regional SA were also strong performers, up 0.03 per cent over the past month, and 11.61 per cent over the past 12 months to a $434,000 median.

Report author Eleanor Creagh said SA continued to kick goals on the national stage.

“Adelaide remains one of the country’s top performing markets,” she said.

“The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022.

“Low stock levels are also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.”

PropTrack senior economist Eleanor Creagh. Picture: Supplied

Adelaide’s house price has also reached a new high – up 0.6 per cent for the month and 14.3 per cent for the year to $781,000 – while metropolitan units have increased 0.14 per cent over the past month and or 11.38 per cent over the past 12 month to $553,000.

Since the start of the pandemic, March 2020, metropolitan Adelaide’s combined dwelling price has increased by 66.2 per cent, while the median combined dwelling price in regional SA has increased by 67.1 per cent.

This outstrips the growth experienced across the nation for the same period, with Australia’s combined capital city dwelling price up by 36 per cent, and Australia’s regional median up 54.9 per cent.

Home prices are up across the state. Picture: Supplied

Ms Creagh said property had performed strongly across the board last month.

“National home prices hit a new record in April, as strong buyer demand has outpaced the rise in new listings this year,” Ms Creagh said.

“While demand remains robust, the pace of price growth is beginning to slow.

“The stable interest rate environment has been a driver of confidence among buyers and sellers.

Ms Creagh said strong population growth, tight rental markets, low unemployment and home equity gains were stimulating housing demand.

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Adelaide’s home values are up again this month, but in good news for those trying to buy, the growth is starting to slow. Picture: Supplied

“Meanwhile, the supply side of the housing market has fallen short in responding to substantial demand,” she said.

“Despite some easing in population growth, this mismatch between supply and demand is expected to persist in mitigating the downward effects of affordability challenges and a decelerating economy.

“As a result, prices are expected to remain on the rise in the months ahead.”