What’s next for Australia’s home price high achiever this winter?

Adelaide has become Australia’s strongest-performing property market, as home prices in the city of churches outpace every other capital city.  

Adelaide’s median home price grew 11% year-on-year (YoY) to $805,000 in May, according to the latest PropTrack Home Price Index. 

Experts point to a combination of limited supply, competitive demand and relative affordability underpinning the South Australian capital’s standout performance. 

Real estate agent and Ouwens Casserly Real Estate executive director Nathan Casserly said the Adelaide market continued to show remarkable resilience, especially in premium inner suburbs.  

“We’re seeing strong buyer competition for well-presented, correctly priced properties, with auction clearance rates consistently high,” he said.  

“That said, the urgency we experienced earlier in the year has moderated slightly, with buyers becoming more considered due to broader economic sentiment and interest rate uncertainty.” 

Adelaide’s median house price has climbed 11.1% over the past 12 months, now sitting at $861,000, while unit prices have grown 10.3% to $612,000. 

For real estate expert and Ray White South Australia and Northern Territory chief executive Matthew Lindblom, there has been strong activity for properties under the $1 million mark in Adelaide.  

Adelaide home prices have grown 11% during the year to May. Picture: Getty

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“Properties below $1 million are still getting a lot of interest and attracting lots of competition among buyers,” he said.  

It was a sentiment shared by real estate agent and Harris Real Estate head of sales Tim Vine.  

“There has been strong activity in the $750,000 to $1 million price bracket, as well as heightened interest in the $1.3 million to $1.5 million range, where families are seeking homes with more space – especially additional bedrooms and larger land holdings,” Mr Vine said. 

“In the past three weeks, we’ve also observed a surge in demand and pricing for larger land allotments with development potential. Many buyers are choosing to secure these sites now for future development opportunities.”  

A limited number of homes for sale compared to the number of buyers looking in Adelaide has contributed to higher prices.  

Ray White South Australia and Northern Territory chief executive Matthew Lindblom said there was still strong activity in Adelaide, particularly for properties under the $1 million mark. Picture: Supplied

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According to PropTrack, the number of new listings in Adelaide was down 6.7% in April compared to the same time last year, while the total number of homes listed for sale was up 5.2% YoY.  

One of the reasons Adelaide has been so popular with homebuyers was its status as one of the most affordable and liveable cities in the country, the experts agreed.  

But Adelaide’s popularity may prove difficult for some first-time buyers to compete in the city, given that prices have climbed faster than any other city since the pandemic began.  

Adelaide’s median home price has soared 87.3% since March 2020, outpacing every other capital city during that period and well and truly beating the national average of 50.1%, according to PropTrack.  

Harris Real Estate head of sales Tim Vine said the winter market could be an opportune time to sell. Picture: Supplied

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How to navigate Adelaide’s property market  

For buyers looking in Adelaide, the experts said it important to be clear on your budget, act decisively, and understand the dynamics of the suburbs that you were targeting.  

Doing your homework – including securing finance pre-approval and building relationships with agents – would give you a real edge. 

For sellers, the experts agreed that presentation, pricing, and marketing would be key in Adelaide.  

Mr Casserly said they were seeing buyers reward properties that were well-prepared and launched with a strong campaign, noting that strategies should be reviewed if properties weren’t seeing activity in the first 14-21 days.  

Mr Vine noted that the traditionally lower stock levels seen in winter would make it an opportune time to sell, especially with interest rate cuts fuelling greater activity.   

Ouwens Casserly Real Estate executive director Nathan Casserly said the Adelaide market continued to show resilience, especially in premium inner suburbs. Picture: Supplied

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Mr Lindblom added that sellers should be mindful of pricing, given that home prices were still growing but not at the rapid rates seen in recent years. 

What’s next for Adelaide real estate  

Looking ahead, the experts agreed that the Adelaide property market had a positive outlook, however market conditions were expected to return to a more stable pace.  

Mr Casserly predicted a more stable, sustainable market in Adelaide during the second half of the year.   

“Recent inflation data and potential rate cuts have improved buyer confidence,” he said.  

“As we head into spring, listings will rise, and we anticipate solid transaction volumes, particularly in lifestyle and downsizer segments.”  

Adelaide suburbs with the biggest annual house price gains

Mr Vine said the market had the potential to remain buoyant over the next 12 months, especially in the sub-$1 million category.  

“We’re seeing increased momentum in the outer suburbs – particularly in the far north and south – where larger land holdings are more attainable, and off-the-plan opportunities are appealing to a wide range of buyers,” he said.  

“Continued rate adjustments will likely further support this growth.” 

Mr Lindblom said the city was set to see further price growth, but encouraged buyers and sellers to focus on the big picture.  

“You don’t just get a home at a good price point in Adelaide, you get convenience and lifestyle,” he said.  

“You can buy a home in a place like Glenelg for a good price, which is at the beach and a 15-minute drive to the city.  

“The cost of living is lower than places like Melbourne, but more importantly, Adelaide gives you back more time because there’s less traffic and you’re closer to amenities here. 

“If you think about what a person’s biggest commodity in life is, it’s their time, and giving people more time back in their life makes Adelaide attractive.”