Adelaide’s housing market has experienced a significant surge, with average house prices climbing by over $103,000 in the past year. This remarkable growth underscores the resilience and attractiveness of Adelaide as a key property market in Australia.
Recent data indicates that Adelaide, along with Perth and Brisbane, has seen substantial property value increases, a trend largely driven by robust demand and limited supply. As per a June 30, 2024 report, Adelaide’s average house price now sits at around $768,000, a notable rise from $665,000 in late June 2023.
Experts attribute this growth to several factors. Firstly, Adelaide’s high quality of life has made it an attractive option for both investors and homebuyers in recent years. The city’s infrastructure developments like new transport links and urban revitalisation projects have also increased the city’s appeal.
The COVID-19 pandemic has also reshaped buyer preferences. Many Australians are now looking for more spacious and affordable living options outside of the traditional hotspots of Sydney and Melbourne. Adelaide has capitalised on this trend, offering a more relaxed lifestyle without compromising on amenities.
Real estate experts highlight that the limited housing supply in Adelaide has also played a major role in driving up prices. The city has seen a consistent influx of interstate migrants, which, coupled with historically low interest rates, has intensified competition for properties.
Despite the sharp rise in house prices, Adelaide remains one of the more affordable capital cities in Australia. This affordability, combined with strong market fundamentals, suggests that the upward trajectory of property prices may continue in the foreseeable future.
Investors are particularly keen on Adelaide, viewing it as a stable and promising market. However, many families from lower income brackets face growing pressure. As prices increase, it becomes harder for aspiring homeowners to acquire properties.
Rental rates have also been on the rise as landlords increase prices adjacent to property values. Rental property vacancies are also some of the lowest in Australia, with only 0.83 percent of homes available for lease, compared with the national average of 1.08 percent.
Brisbane and Perth are other cities that have six-digit property value increases from 2023 to 2024. Brisbane’s home prices climbed from around $742,000 in June 2023 to just over $859,000 in June 2024, a difference of around $117,000. In Perth, that number went up from $613,000 to $757,000 – an increase of around $145,000
