The surprise state coming out on top of the property ladder
Adelaide's property market has outperformed all others over the past few years and South Australia's regional markets are currently leading the nation for price growth.
Around the country, house prices remain higher than pre-Covid levels but there is one surprise state coming out on top.
According to CoreLogic, national house prices are 14.8 per cent higher in March 2023 than they were in March 2020 at the start of the pandemic, with Adelaide being the strongest performer since the pandemic.
Over the past three years, houses in Adelaide have topped the charts across Australia’s capital cities to be sitting 44 per cent higher now than at the end of March 2020.
PropTrack reports Adelaide recorded further price growth in June, with prices are up 5.3 per cent compared to the same time a year ago.
The median house value across Adelaide has increased by $211,097, which is much stronger than Sydney, where house values have gained an extra $119,830.
While it might be a surprise to some, the growth of the Adelaide property market has been inevitable courtesy of a huge infrastructure spend, affordability factors, high rental yields and low vacancy rates.
On the ground, demand for property in Adelaide has never been so strong, with many homes continually selling above their listed price, open homes attracting upwards of 100 groups and days on market shrinking.
This demand is coming from local, interstate, and international buyers which is further pushing values up.
Top performing Greater Adelaide suburbs include the northern suburbs within the City of Playford (including Elizabeth), which has experienced a 12-month growth of 11.5 per cent, Gawler (9.3 per cent) and Salisbury (6.9 per cent).
These are all suburbs with a median house price under $542,000.
Regional SA leads the nation
Regional South Australia is also growing at an unprecedent rate and continues to defy the odds by maintaining the highest levels of growth in the country across CoreLogic’s one month, three month and 12-month growth calculations.
Top performing regional areas include Murray and Mallee in the south east, with a 12-month growth of 13.5 per cent and the popular Barossa Valley region (8.3 per cent).
It is important to also note 11 consecutive interest rate hikes have had varied impacts across South Australia, many of which are yet to be felt nationwide.
So why does Adelaide defy the odds and continue to be a powerhouse market?
Stability Adelaide’s strong point
Adelaide is a market “smart investors” have been looking to since 2017, but really showing its resilience during the pandemic.
Adelaide is a very fundamentally stable market. It has a huge infrastructure pipeline, employment diversity, strong rental markets and population growth.
This meant it remained very stable during the turbulent times of the pandemic, evidently topping the charts and remaining as one of the only two markets still recording positive 12-month growth alongside Perth.
Adelaide is poised to stay strong and continue its run at the top of the charts because of the fundamental powerhouse projects including:
- Australia’s largest and most expensive hospital precinct, such as Royal Adelaide Hospital and Adelaide Women’s and Children’s Hospital
- $2 billion submarine and naval contracts that will create employment
- Growing technology sector thriving due to government incentives and assistance to business.
South Australia has also scrapped stamp duty for first home purchasing a new home valued up to $650,000.
The good news is tipped to keep coming for Adelaide with many investors reaping the benefits of owning property in such a powerhouse economy.