Adelaide Property Market Hits Record Highs Amid Rising Demand

adeliade-city-south-australia

Adelaide house prices rose another 1.7% in June, the second fastest growth rate after Perth, which took the market by 15.4% or about $103,000 in the last financial year Adelaide’s strongest go and some of the cheapest markets Growth is skewed, with Playford rising 19.9% ​​annually and Salisbury 19%.

Property typeMedian price12 month change3 year (pa) change7 year (pa) change10 year (pa) change
All Houses$909,47615.4%17.9%8.6%6.6%
3 br Houses$821,34613.1%16.8%7.9%6.2%
All Units$468,06711.4%13.1%6.9%4.5%
2 br Units$492,63820.3%15.7%8.4%5.6%
Combined$830,30215.0%17.3%8.4%6.3%
Source SQM research June 2024

Adelaide property reached $785,000 – a record amid inflation, high rental prices and rising interest rates.

South Australian Real Estate said house prices in SA rose 4.93 per cent in the previous quarter and 13.32 per cent in the same quarter last year.
House prices in metro Adelaide rose 3.29 per cent last quarter and 12.14 per cent compared to the same period a year earlier.
Prices were particularly high in suburbs such as Royal Park, Tea Tree Gully and Eyre – a suburb in the Playford Council area, which posted increases of 53.46 per cent, 46.98 per cent and 43.63 per cent respectively.

By comparison, sales in both South Australia and Metro Adelaide grew by 16.86 per cent and 21.40 per cent respectively over the previous quarter.

The top suburbs for sales recorded in the June quarter were Mount Barker, Morphett Vale and Paralowie.

  1. ANZ predicts capital city property prices will grow by 6-7% in 2024, 5-6% in 2025 and 5% in 2026. Brisbane, Perth and Adelaide are likely to outperform other cities as a result of a long-term shortage of available housing. Expected household income growth (supported by monetary policy first) will support inflation by the end of 2024.
  1. CBA expects capital inflation to increase by 5 per cent, with smaller changes in urban areas. Brisbane will see a 6 per cent increase, Melbourne and Perth 5 per cent, Sydney 4 per cent and Adelaide 1 per cent.
  1. NAB forecasts an average price increase of 5.4 per cent in major capital cities. Prices are expected to rise by 6.5 percent in Brisbane, 6.2 percent in Perth and Adelaide, 5.5 percent in Melbourne, and 5 percent in Sydney. Hobart prices are expected to end flat at the end of the year.
  1. Westpac forecasts a 6 per cent increase for the combined capitals. Perth had the biggest increase of 10 per cent, followed by Brisbane at 8 per cent, Sydney at 6 per cent, Adelaide at 4 per cent 10 per cent and Melbourne at 8 per cent.

Conclusion

In conclusion, the Adelaide property market is experiencing strong growth, with house prices up 1.7% in June to reach $785,000 which is well above and beyond a strong economy, high rental demand and limited housing supply, in particular in suburbs such as Playford and Salisbury, which have experienced annual growth of nearly 20% While the overall market shows promising growth, challenges such as rising prices and high interest rates continue to limit revenue potential has fallen to many members of the public. Forecasts from financial institutions suggest that prices will continue to rise in the coming years, particularly in Adelaide, Brisbane and Perth, indicating strong prospects for property investment in the region.

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