Over the 12 months leading up to February 2024, Australia’s property market has witnessed a notable upswing, with Adelaide’s real estate sector playing a pivotal role in this upward trend. According to CoreLogic’s recent Home Value Index, the national median dwelling value has soared by 8.9%, buoyed significantly by Adelaide’s standout performance. In a show of resilience and growth, Adelaide’s property values have grown an impressive 13% year-on-year across both houses and units, signalling a robust growth phase mirroring the national trend.

Adelaide’s Suburb Performance: A Closer Look

A detailed analysis of suburb-specific data in Adelaide reveals a pattern of widespread growth, positioning the city as a leading player and contributor to national real estate market growth. Out of the 286 Adelaide suburbs examined, a staggering 284 have experienced growth in property values over the past year. This almost universal appreciation in values showcases Adelaide’s strong and dynamic real estate landscape. However, it’s noteworthy that the housing market in Black Forest and the unit market in Glenelg South witnessed slight declines of -0.4% and -1.8%, respectively, marking them as exceptions in an otherwise booming market.

This broad-based increase in property values can be attributed to several key factors, including inbound migration, a tight housing supply, and Adelaide’s relative affordability compared to other major cities in the eastern states. This affordability factor, in particular, has enhanced Adelaide’s appeal, making the financial impact of increased loan repayments due to rate hikes more manageable for homeowners in South Australia compared to those in New South Wales and Victoria.

Quarterly Growth and Market Resilience

Adelaide’s property market has not only demonstrated remarkable year-on-year growth but has also shown consistent quarterly increases. The most recent quarter saw a 3.3% rise in property values, with growth observed in 99.3% of Adelaide’s house markets and 93.2% of unit markets. This sustained growth, despite broader economic pressures, underscores the resilience and strength of Adelaide’s real estate sector.

Rental Market Trends

Complementing the surge in property values, Adelaide’s rental market has also experienced significant growth. An analysis of 206 suburbs revealed that 204 reported increases in rental values over the year, highlighting an alignment with the nationwide rental market trend.

Future Outlook

Adelaide’s real estate sector has shown remarkable strength and resilience, recording broad-based gains across nearly all suburbs. Driven by a healthy balance of demand and supply, coupled with attractive migration rates and relative affordability, Adelaide continues to draw both investors and homebuyers. However, with the anticipation of future interest rate adjustments potentially leaning towards a decrease, the Adelaide market is unlikely to show any immediate relief in escalating property values for prospective homebuyers.