Adelaide property prices hit new record
House prices soared by 53 per cent in one western suburb over the past year while the median cost for a home in Adelaide has hit a new high, according to the latest real estate data.
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![The median price for property in South Australia hit a new record. Photo: Tony Lewis/InDaily.](http://wp.indaily.com.au/wp-content/uploads/2024/07/image-1200x800-2024-07-18T101511.603.png?resize=1313,876&quality=90)
The median price for property in South Australia hit a new record. Photo: Tony Lewis/InDaily.
Properties in metropolitan Adelaide have hit a median $785,000 – a record amid skyrocketing rental prices, stubborn inflation and high interest rates.
The Real Estate Institute of South Australia says the median price of a home in SA increased by 4.93 per cent on the previous quarter, and by 13.32 per cent on the same quarter last year.
In metropolitan Adelaide, house prices rose by 3.29 per cent on the previous quarter, and by 12.14 per cent on the same period the year prior.
Prices were particularly high in suburbs like Royal Park, Tea Tree Gully and Eyre – a suburb within the Playford Council area – , which rose by 53.46 per cent, 46.98 per cent and 43.63 per cent respectively.
In tandem, the volume of sales across South Australia and metro Adelaide rose by 16.86 per cent and 21.40 per cent from the previous quarter.
The top-selling suburbs in terms of recorded sales in the June quarter were Mount Barker, Morphett Vale and Paralowie.
“REISA is pleased that the new record median price and increase in the volume of sales underscores the strength and the resilience of the South Australian real estate market,” said CEO Andrea Heading.
“However, it is also keenly aware that the issues of supply, inflation, high interest rates and punitive state land taxes will always have a deleterious effect on the real estate cycle.
“Once these factors are brought under control, an upward trajectory will seem more consistent and sustained.”
Heading said suburbs with strong sales volumes highlighted “the key drivers of our real estate market which are location, affordability and potential”.
“Those suburbs which provide attractive investments in infrastructure, development potential and amenities will always perform strongly for first home buyers and investors,” she said.
Shelter SA CEO Alice Clark said rising house prices meant the pool of South Australians being locked out of home ownership was “getting bigger and bigger”.
“The market can’t fix this problem. I’ve seen reports that house prices in Adelaide will be a million dollars in the next year or two, so it’s just getting to be ridiculous,” she said.
“We have a lot of low-income families, and they’ve been locked out of home ownership for a long, long time.
“Now we’re seeing even double-income families who will never gather a deposit for a house and would never be lent that amount of money for a mortgage.”
Heading said buyers were willing to pay for properties that were “realistically and transparently priced”.
“South Australia’s real estate market continues to do astonishingly well despite the low supply of housing stock and the prevailing high interest rates,” she said.
“We commend the state government on taking the issue of housing supply seriously and we look forward to continuing our dialogue with them in addressing this and the complementary issue of housing affordability.”
The REISA report follows the release of a PropTrack Market Insight Report which found that rental prices in Adelaide rose by 11.8 per cent over the 2024 financial year, with the median advertised rent on dwellings now $570 per week.
The increase was the second largest of all capital cities in Australia, after Perth where rent prices rose by 18.2 per cent over the last year to hit a median of $650 per week.