- House prices up 6.1 per cent at $574,264
- Adelaide was previously second-most affordable city; now is fourth.
- Units up 13.5 per cent at $350,122
- Benefited from traditionally having less exposure to overseas buyers compared to other capital cities
The City of Churches enjoyed strong growth over the past year with the median house price hitting $574,264, representing a 6.1 per cent increase, according to Domain’s House Price Report.
This sharp increase has caused Adelaide to lose its reputation as a relatively affordable city. Previously the second most affordable city to purchase a home, the city has now become the fourth. Hobart, Perth and Darwin have a lower median house price, according to the Domain data.
Units did hit a record high too at $350,122, a 13.5 per cent increase, the steepest annual growth for units of any Australia capital city. This makes Adelaide the third cheapest capital for units after Darwin and Perth.
Historically, the South Australian capital has less exposure to changes in investor activity and overseas migration unlike many other capital cities, making the local market historically stable.
Fellow Australians appreciating Adelaide’s laid-back lifestyle is touted to have influenced the dramatic increase from other buyers. The increase in individuals working-from-home is also likely to have caused the interest in houses as buyers acknowledge they will be spending more time at work.
As previously reported by The Property Tribune houses prices in Sydney have reached their highest levels ever yet unit prices are $20,000 below the median price in March 2020, supporting the argument buyers desire houses if they are going to be staying home more often in comparisons to units.
Time will tell whether Adelaide’s historically stable property market continues to be rocked by this surge in demand.