SA home values record biggest rise in the country to new high

Adelaide property prices are $71,500 higher than they were at the same time last year, after rising to a record high once again.

PropTrack’s July Home Price Index report revealed today that the city’s median dwelling value – for both houses and units – climbed 9.8 per cent over the past year to $837,000.

In Regional SA, the median rose a whopping 12.9 per cent to $461,000, making prices $56,400 higher than the same time last year.

Prices have almost doubled in regional SA over the past five years, rising 94.7 per cent, while Adelaide recorded 88.2 per cent growth in the same period.

Property prices have surged across the state over the past year, latest PropTrack data shows.

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Both areas recorded the biggest annual rises in their respective capital city and national regional markets, while Adelaide had the largest monthly increase in the country at 0.6 per cent.

REA Group senior economist and report author Eleanor Creagh said Adelaide’s population growth, lifestyle appeal and comparative affordability were just some factors driving prices up.

She said predicted interest rate cuts over the next year would likely continuing to push prices up.

“Adelaide has been a strong performer for the past three to four years,” she said.

“Certainly we’re expecting prices are going to continue to lift … but I’m not sure they’re going to lift at a faster pace.

“The uptick will be more measured.”

Ms Creagh said affordability concerns would prevent a sudden surge in price growth.

REA Group senior economist Eleanor Creagh.

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According to the data, Adelaide’s house prices rose 0.68 per cent for the month and 9.81 per cent for the year, taking the median to $907,000, while unit prices increased 0.34 per cent and 9.66 per cent respectively to a median of $631,000.

Regionally, prices sit at $466,000 for houses and $428,000 for units.

Turner Real Estate chief executive Emma Slape said the figures weren’t surprising given buyer demand was so strong.

“Certainly locally we’ve seen steady demand coupled with really tight stock levels, which always creates more competition,” she said.

“We’ve seen multiple offers on a lot of properties that have gone to market in the past 12 months.

“Since the start of the year we’ve seen the more affordable suburbs heat up.”

Ms Slape said government incentives to help buyers purchase their first home, falling interest rates and cost-of-living factors have likely driven demand in the more affordable areas, bumping prices up dramatically.

Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin.

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She said the likelihood of further interest rate drops over the next year would fuel the market further.

“I think that will give people confidence in making their next more or making their first move,” she said.

The state’s top performing area over the past year was the Barossa-Yorke-Mid North, with 14.4 per cent growth to a median dwelling price of $474,000.

The outback region (12.7 per cent), South East (12.2 per cent), Adelaide’s north (11.3 per cent) and Adelaide’s south (10.9 per cent) rounded out the top five.