Regional SA house prices hit new high
The median value of a home in regional South Australia has hit a new record, with prices jumping by more than 75 per cent since the pandemic.
The price of a home in regional SA grew by 0.57 per cent over October, making it the highest growth market in the country according to new PropTrack data.
With a median price of $449,000, the cost of housing in the state’s regions is as expensive as it’s ever been and up more than 75 per cent since the onset of the COVID-19 pandemic.
PropTrack chalked the rise in regional house prices up to the relative affordability of property outside of Adelaide, with the median price 12.07 per cent higher than it was in October 2023.
House prices in Adelaide also rose, and at 0.43 per cent in October came second to Melbourne’s monthly growth of 0.49 per cent.
The median price of a home in Adelaide is now $783,000 according to PropTrack, compared to $793,000 in Melbourne.
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The most expensive place to buy in the country is Sydney, with a median price of $1,108,000 – up 0.19 per cent on September and by 5.04 per cent over the year.
Nationally, house prices hit a new record in September with the national median rising 0.28 per cent to $868,000. House prices in Australia are now 5.62 per cent higher than they were a year ago.
Shelter SA executive director Alice Clark warned that housing was already unaffordable for low-income households but is becoming unaffordable for middle income families too.
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“Low income families have been locked out of the home ownership market for some time, but the numbers are growing to include medium and higher income households,” she said.
“For example, using the Homestart loan calculator, even a single person with an annual income of $90,000, well above the average income, and without any other financial commitments or debts, could only borrow $440,000 but would need a deposit of $50,000 and there are not many people with those sorts of savings, much less to attain the metropolitan prices.
“There doesn’t seem to be any plan for housing in regional South Australia, with the State Government’s focus on metropolitan suburbs and market housing underlined by an underinvestment in social housing. Neither is there any plan for the short term, with homelessness on the rise and almost daily stories of people resorting to sleeping in tents, cars and caravan parks.”
PropTrack said Perth, Adelaide and Brisbane remain the strongest capital cities for annual growth, with prices up 20.58 per cent, 14.91 per cent and 12.51 per cent over the past year respectively.
“Buyers are out in force this spring selling season,” said REA group senior economist Elanor Creagh.
“It’s clear resilient housing demand is defying persistent affordability restraints.
“July’s tax cuts have boosted borrowing capacities and buyers’ budgets which has supported growth. The persistent rise in home values has also motivated many to overcome affordability challenges and transact.”
She said that while home price growth had regained speed in October, elevated interest rates and affordability constraints were weighing on buyers.
“Buyers now have more properties to choose from, and uncertainty around the timing of interest rate cuts remains,” she said.
“Still, prices are expected to remain on the rise as the busier selling season closes out.”
