SA home prices hit new record in May

South Australia’s property sector continues to show its strength, with a new report revealing regional houses recording the highest value growth of any national market over the past year.

South Australia’s property sector continues to kick goals, with regional SA houses recording the highest value growth of any national market over the past 12 months, and Adelaide recording the second-highest growth of any capital city.

PropTrack’s June Home Price Index, released today, shows regional SA’s combined dwelling price has risen 11.68 per cent over the past 12 months to a $443,000 median.

It edged out regional Western Australian homes, which have increased in value by 11.67 per cent over the same period.

Adelaide’s combined dwelling price has also climbed to a record $748,000 – up 0.53 per cent for the month and 14.49 per cent over the past year.

Report author Eleanor Creagh said SA continued to kick goals on the national stage, and that continued growth could be expected.

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

“Current interest rate stability has sustained buyer and seller confidence, while ongoing home price rises are likely incentivising many to overcome affordability challenges and transact with the expectation of further growth.”

PropTrack senior economist Eleanor Creagh. Photo: Supplied

Looking at houses, metropolitan Adelaide’s house price is edging closer to $800,000, with values climbing 0.55 per cent over the past month, and 14.76 per cent over the past year to a $798,000 median.

Unit values are also up – recording 0.38 per cent growth over the past month, and 12.2 per cent over the past year to $577,000.

Regional house prices, despite recording an annual increase of 11.98 per cent, dropped 0.06 per cent over May and now have a $449,000 median.

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.

Adelaide’s combined dwelling median has climbed 68.7 per cent since the start of the pandemic, with regional homes close behind at 67.6 per cent.

“Despite some easing in the rate of population growth and more stock on market, home prices are expected to lift further in the months ahead,” Ms Creagh said.

“Although, it is likely the pace of growth will continue slowing through the seasonally quieter winter period, particularly with interest rate cut expectations pushed out to late-2025.”

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James Packham, Director of Harcourts Franchise (Harcourts Packham Property)

Harcourts Packham managing director James Packham said recent infrastructure upgrades had opened SA up to investment.

“These initiatives have bolstered the regions’ appeal, attracting both residential and commercial investors and fuelling property value appreciation,” he said.

“Beyond being a hotspot for buyers, South Australia has emerged as the nation’s most competitive rental market.

“With vacancy rates at record lows, securing rental properties has become increasingly challenging for tenants.

“This trend underscores the strong demand for housing across the state, presenting opportunities for investors in the rental market.”

Originally published as SA home prices hit new record in May