The momentum in the Adelaide property market persists.
In May 2024, the PropTrack Home Price Index revealed a 0.30% uptick in national home prices, setting a new record for the month and marking a 2.73% increase year-to-date. Driven by demand surpassing supply, national home prices have seen uninterrupted growth for 17 consecutive months, reaching a peak in May. Compared to May 2023, national prices are now 6.68% higher and have surged by 9.58% since their low point in December 2022.
With the exception of Hobart (-0.13%) and Canberra (-0.21%), all capital cities witnessed price increases in May, albeit at a slower pace compared to the summer months. Smaller cities notably outperformed larger ones during this period, with Perth (+0.73%), Brisbane (+0.67%), and Adelaide (+0.53%) experiencing the most substantial growth.
Looking locally, Adelaide has consistently shown strong annual growth over the past two years, with May seeing a 0.53% increase, pushing the annual growth rate to 14.49%, significantly surpassing the national average of 6.68%. Despite this growth, Adelaide’s median dwelling price remains relatively affordable at $748,000 compared to the national median of $784,000.
Regionally, South Australia boasts two of the top 10 highest-growth regions in Australia. Adelaide North continues its impressive growth trajectory, up by 17.83% year-to-date, while the Barossa-Yorke-Mid North region saw a growth of 16.65%.
Adelaide faces persistent low stock levels, trailing only Perth in experiencing the highest decline in total listings among capital cities over the past year. This scarcity of housing inventory intensifies buyer competition, further driving demand in Adelaide.
In the upcoming months, Adelaide is anticipated to maintain its market outperformance, albeit at a slower pace. Its property market remains attractive to buyers seeking both affordability and appreciating real estate investments.
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Sources:
https://www.realestate.com.au/insights/proptrack-home-price-index-may-2024/
https://propertyupdate.com.au/latest-proptrack-home-price-index/
https://www.abc.net.au/news/2024-05-01/house-prices-breakdown-by-state-territory-capital-city-region/103784240
