Adelaide house prices continue to skyrocket
House prices in Adelaide have jumped by nearly 75 per cent since March 2020, according to new data which says local prices may overtake Melbourne’s within a year.
PropTrack’s Home Price Index for July said Adelaide house prices increased by 73.2 per cent since March 2020 and the median price was now $770,000.
Nationally, house prices increased by 43.4 per cent in the same period.
Adelaide properties saw one of the top price growths in the country during July, with a .58 per cent increase, second only to Perth, which had an increase of .88 per cent.
In the last 12 months, Adelaide house prices have grown by 14.81 per cent, bringing prices to a new high.
The report said that “relative affordability across the city has made Adelaide the strongest performing market since the onset of the pandemic”.
“But ongoing price growth means values may eclipse Melbourne over the coming year.”
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“Strong housing demand pushed prices higher, despite more homes being listed in what is a higher interest rate environment,” PropTrack senior economist Paul Ryan said.
“Slow construction activity, above-average income growth and July’s tax cuts are clearly contributing.”
Around the state, Adelaide’s North saw the highest annual growth in dwelling prices, with a 19.28 per cent growth bringing the median price to $672,000.
Adelaide’s west saw a 14.74 per cent growth to a median of $830,000, while the south saw a 14.03 per cent increase to $791,000.
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The average price of all dwellings in central Adelaide and the Hills was $962,000 – an 11.75 per cent increase.
Regionally, the Barossa, Yorke, and Mid North saw house prices increase by 14.22 per cent, bringing the average to $439,000.
The PropTrack report said Adelaide’s ongoing price growth meant values may eclipse Melbourne in the coming year.
“Further home price growth is expected [nationally] over the coming months as the market moves into the traditionally busier spring selling season,” Ryan said.
“However, the price growth is likely to remain modest as uncertainty about the path of interest rates and affordability challenges constrain buyers’ budgets.”
Necia Pascale, CEO of Adelaide Benevolent Society, Adelaide’s oldest charity, said the number of people applying for the charity’s affordable rental homes had “increased dramatically over the last three years”.
“We are seeing more people, including those with part-time and full-time employment, applying for our homes because the private rental market is now unaffordable for them,” Pascale said.
“Whilst we are a relatively small not-for-profit housing provider, we have over 1000 people on our housing list and relatively few vacancies to offer. It is distressing to see the lack of affordable rental options for people on low incomes.”
Hutt St Centre CEO Chris Burns told InDaily the rise in house prices had left many people without hope of home ownership, with the centre seeing a 30 per cent increase in visits in the last financial year.
“Any aspiration they had to save for a deposit for a house is lost. They just know it’s not achievable,” he said.
“Affordable housing is now a middle-class issue. For the people we work with owning a house is just a lost dream.
