Adelaide property market reaches unprecedented price levels – realestate.com.au

House prices in Adelaide have continued to rise, with a new report showing that Adelaide’s average house price is now just $4000 lower than an average house price of $1 million.

PropTrack’s house price index released today shows Adelaide’s average combined home value has risen almost $110,000 in the past year to a record high, with experts saying more growth could be coming even as homeowners brace for a possible rate hike in February.

According to the report, Adelaide house prices rose to a new high in January – up 1 per cent for the month, and 13.6 per cent, or $118,700, to $996,000 – while metropolitan units rose 0.3 per cent last month and 14.6 per cent, or $89,200, over the past year to $686,000.

Combined house prices in Adelaide rose 0.9 per cent last month – the highest in the country – to an average of $916,000.

This was nine times the national capital’s average monthly growth of 0.1 percent.

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The growth rate in regional South Africa, which has been the country’s standout in recent years, was equally strong this month at 0.7 percent – more than double the 0.3 percent recorded nationally.

This brings the regional median home value to $495,000, with regional home prices up 0.8 percent this month to $501,000.

Average values ​​per regional unit reached $460, after growing 13.1 percent over the past year, despite a 0.3 percent decline in the quarter.

REA Group senior economist and report author Angus Moore said he expected Adelaide’s median to cross the $1 million mark next month.

“Adelaide is growing quite rapidly and there is no evidence that momentum is waning in any serious way,” he said.

“This particular milestone doesn’t necessarily represent a major change for affordability, but South Australia is a much less affordable market than it used to be.

“It’s had tremendous growth over the last six years, and what that means is that affordability has deteriorated very significantly, at a record low for the state. Whichever way you look at it on our property housing affordability index, it’s the second least affordable state in Australia, just behind New South Wales.

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“The fact that we continue to see quite strong growth will not improve that picture.

“We certainly expect Adelaide to continue to grow this year, whether it outpaces Brisbane and Perth is hard to say. But we expect these three cities to remain fairly solid.

House values ​​in Adelaide have risen. Image: Supplied by Knight Frank

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Over the past five years, metropolitan Adelaide’s combined house price has increased by 93.4 per cent, while regional homes have increased by 96.7 per cent.

According to the report, Adelaide’s north was the state’s strongest region for value growth, with the average house price rising 15.14 per cent, ahead of homes in Adelaide’s west and south, with 14.28 per cent and 14.14 per cent increases respectively.

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Real Estate Institute of South Australia CEO Andrea Heading said the Adelaide market had performed strongly, particularly in the prestige market.

“It is remarkable to see how quickly the number of suburbs exceeding the $1 million median has grown,” she said.

“This shift reflects not only the demand for premium homes, but also the ripple effect of price growth across our city and lifestyle regions

REISA CEO Andrea Heading. Delivered

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“Adelaide continues to exceed expectations.

“Our growth was strong but moderate, which is the hallmark of a sustainable market.”

– with Tim McIntyre