Adelaide Sets New Records For House Prices

The median house price is up 3.7 per cent from the previous quarter

Adelaide housing prices continue to hit record high levels by overcoming the seasonal third-quarter slump this year. 

The third quarter is seasonal and usually shows a slowing down in the region but this year Adelaide broke new record highs for house prices. 

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Significant results

The latest quarterly data report by the Real Estate Institute of South Australia’s (REISA) mentions that Metropolitan Adelaide house prices rose by 3.7 per cent from the previous quarter. The median house price made a record breaking increase of 13.82 per cent year-on-year.

The latest gains brought the average Adelaide property market and property prices to touch $560,000 — the highest so far on record. Vendors are the biggest winners in the local market. 

It was also noted that the South Australian property market continued its growth trajectory during the September quarter. The median house prices recorded a 9.66 per cent increase in the last 12 months with an upward curve of 1.49 per cent compared to the previous quarter. 

The regional housing market, on the other hand, recorded a decrease from the previous quarter by 1.07 per cent bringing the median price to $277,000 — Compared to the same quarter in 2020, the growth figures are still up by 1.84 per cent. 

It was duly noted by REISA that high capital growth and comparatively high rental yields continue to lure investors to invest in the state as the transaction volumes continue to be strong.

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What are the factors behind Adelaide’s price growth?

Traditionally, the property in Adelaide has lagged behind the larger capitals. The recent growth seems to be driven by interstate and outside investors. The current market is highly lucrative from an investing point of view. 

Limitations in supply for good housing options coupled with buyer confidence and favourable macro-economic factors seem to be the reason for the growth in housing prices in Adelaide. On the flip side, this makes housing affordability a struggle for first-time home buyers.

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