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Adelaide has overcome the seasonal third-quarter slump this year, as a new report revealed the city broke new record highs for house prices.
Real Estate Institute of South Australia’s (REISA) latest quarterly data showed that metropolitan Adelaide had notched a record-breaking median house price increase of 13.82 per cent year-on-year, up 3.7 per cent from the previous quarter.
Vendors are seen as the biggest winners in the local market, as the latest gains brought the average Adelaide property prices to $560,000 – the highest on record.
Data also revealed that the overall South Australian property market had continued its growth trajectory during the September quarter, recording a 9.66 per cent increase in median house prices over the last 12 months and an uptick of 1.49 per cent compared to the previous quarter.
REISA described the results as “significant”, given that the third quarter traditionally shows a slowing down in the region.
On the one hand, the regional housing market recorded a decrease of 1.07 from the previous quarter, bringing the median price of $277,000. Despite the decline, the figures were still up 1.84 per cent increase from the same quarter in 2020.
In terms of sales, REISA noted that the transaction volumes in the state continue to be strong, as investors continue to be lured in by comparatively high rental yields but now strong capital growth.
However, it noted that the limitations in supply, coupled with favourable macroeconomic factors, such as interest rates and consumer confidence, are seen to drive the upward trajectory of prices, which will make housing affordability a struggle for first home buyers.
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