Adelaide’s housing market is currently witnessing an extraordinary surge in property prices, according to recent statistics. Specifically, data from PropTrack indicates that home prices in the South Australian capital have escalated by an impressive 11.32 per cent over the last year, making it the second-fastest growing market in Australia, just behind Perth. Notably, since the onset of the COVID-19 pandemic, Adelaide has experienced a staggering growth rate of 83.5 per cent, leading the nation in this regard.
Economist Eleanor Creagh has attributed this robust increase to a combination of factors, including strong population growth, tight rental markets, and heightened investor activity. Established homeowners are increasingly benefiting from these price gains by leveraging their home equity for upgrades.
However, these soaring prices have raised affordability concerns among many residents in South Australia. Real estate agent Todd Foulds noted a shift in the competitive landscape; while buyers previously encountered several offers that were significantly higher than the asking price, the current scenario presents offers that are much closer in value, hinting at a crowded but more balanced bidding environment.
Moreover, this price surge is not limited to Adelaide alone; regional areas in South Australia are also experiencing the highest rate of growth across the country, both recently and since the pandemic began. Despite the continuous upward trend, PropTrack suggests that while growth is anticipated to continue in the months ahead, it is likely to proceed at a more measured pace compared to the unprecedented spikes seen over the past five years.