Home prices in regional SA recorded a slight fall in May, according to the PropTrack Home Price Index, released last week.
The report found that regional SA home prices were down 0.3% in May, pushing them just below their peak.
PropTrack’s Eleanor Creagh said in regional SA, home prices fell 0.3% in May, pushing them just below their peak in April 2025.
“Despite the decline, regional SA remains the strongest performing market annually in the country, with prices sitting 11.83% higher than a year prior,” she said.
“Home prices in Adelaide lifted a solid 0.52% in May as the city continued its streak of strong performance.
“This comes after the RBA cut interest rates further in May, building momentum in home price growth.”
Ms Creagh said compared to May 2024, home prices in Adelaide were sitting 11.04.% higher, making it the strongest performing capital.
“Houses led growth in the month, lifting 0.57%, while units rose 0.1% in May. Over the year, both houses (+11.14%) and units (+10.26%) have performed strongly,” she said.
“National home prices hit a new record in May, growing by 0.39%. Prices have now grown for five consecutive months and are up 4.12% year-on-year.
“Capital city markets led the gains over the month, rising 0.45%. All capitals saw prices rise. Sydney, Brisbane, Adelaide, Perth and Darwin are all now at price peaks.
“Melbourne saw the strongest monthly rise (+0.79%), continuing its recovery after a prolonged period of softer growth. However, values remain 2.85% below their peak.
“Despite Melbourne leading monthly gains, Perth’s median home value of $787,000 has overtaken Melbourne’s at $782,000 for the first time in a decade. This reflects Melbourne’s relative weakness compared to Perth’s persistent outperformance in recent years and affordability-driven demand.”
Ms Creagh said Adelaide (+11.04%) led annual growth among the capitals, followed by Perth (+8.40%) and Brisbane (+8.38%).
“Although these markets continue to lead annually, momentum is increasing in Melbourne, Canberra and Hobart after lagging in 2024,” she said.
“Regional prices rose 0.25%, with annual growth of 5.19% outpacing the combined capitals (+3.71%). Regional prices are now 65% higher than their levels five years ago.”
Ms Creagh said national home prices rose 0.39% in May, marking the fifth consecutive month of growth and a new record high for Australian home values.
“With interest rates falling, price momentum has increased and broadened, with all capitals seeing prices lift in May,” she ssaid.
“Price growth across the capitals is starting to converge. Melbourne, which previously lagged the other capitals, is now seeing home price growth pick up. Cities such as Perth and Brisbane are now seeing growth moderate after strong outperformance. The growth seen in all capital cities is underpinned by improved buyer sentiment and renewed confidence following interest rate cuts.
“Lower interest rates have lifted borrowing capacities and boosted buyer demand. And with further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions.
“Looking ahead, while stretched affordability will remain a constraint, a chronic lack of new housing supply, population growth, and targeted buyer incentives are expected to keep upward pressure on prices. In combination with interest rates continuing to move lower, these factors are likely to drive further price growth throughout the remainder of 2025.”
