Adelaide Property Market Reaches New Heights Amid Rising Rental Prices

Times Viewed: 20

The Adelaide property market has soared to unprecedented levels, setting a new median price record of $785,000 as rental prices continue to climb, inflation remains high, and interest rates stay elevated. The latest findings from the Real Estate Institute of South Australia (REISA) indicate that the median price of homes in South Australia has increased by 4.93% from the previous quarter and an impressive 13.32% compared to the same period last year. Metropolitan Adelaide saw a 3.29% rise on the last quarter and a 12.14% increase year-on-year.

David Simmons, in his detailed report, highlights how suburbs such as Royal Park, Tea Tree Gully, and Eyre have experienced dramatic price surges, with increases of 53.46%, 46.98%, and 43.63% respectively. “The volume of sales across South Australia and metro Adelaide has also risen significantly, by 16.86% and 21.40% from the previous quarter,” Simmons writes, emphasizing the robust activity in the real estate market.

REISA CEO Andrea Heading commented on the findings, stating, “The new record median price and increase in the volume of sales underscore the strength and resilience of the South Australian real estate market.” She also pointed out the negative impacts of supply constraints, inflation, and high interest rates on the market’s cycle. “Once these factors are brought under control, an upward trajectory will seem more consistent and sustained,” Heading explained.

The rising house prices have sparked concerns about affordability, particularly for low and middle-income families. Shelter SA CEO Alice Clark expressed her worries, saying, “The pool of South Australians being locked out of home ownership is getting bigger and bigger. 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.”

This sentiment is echoed in the PropTrack Market Insight Report, which noted an 11.8% increase in rental prices in Adelaide over the 2024 financial year, making it the second largest rise among all Australian capitals. The median advertised rent on dwellings now stands at $570 per week.

Heading remains optimistic about the future, praising the state government’s efforts to address housing supply and affordability. “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 remarked.

As the Adelaide real estate market continues to evolve, the tension between soaring prices and housing affordability remains a critical issue for policymakers and the community alike.

References:

https://www.indaily.com.au/business/property/2024/07/18/adelaide-property-prices-hit-new-record