Regional SA was the strongest performing market across the country for home prices in September, according to the PropTrack Home Price Index released this week.
The report found that regional SA home prices increased by 0.58% in September, the greatest monthly growth of all capital and regional markets.
Home prices in regional SA reached a new peak in September to sit 10.79% higher year-on-year.
Home prices in Adelaide (+76.6%) and regional SA (+72.2%) have surged since the onset of the pandemic due to their relative affordability.
Adelaide home prices recorded the strongest monthly growth in September of the capitals (+0.53%), as prices were up 15.05% year-on-year.
Although the number of properties hitting the market has increased, total stock remains well below the prior five-year average, giving sellers the upper hand as new listings are quickly absorbed amid intensifying competition.
The comparative affordability of Adelaide homes has contributed to ongoing strong growth, and values may eclipse Melbourne by the first quarter of next year if the current trend persists.
PropTrack’s Eleanor Creagh said tThe upswing in Australia’s home prices has persisted into the spring selling season, though growth has slowed with buyers enjoying more choice.
“Housing demand remains resilient, defying affordability constraints with prices lifting across much of the country in September, albeit at a slower pace in most markets. The number of homes listed for sale has lifted providing more choice and slowing price growth,” she said.
“However, the pace of growth remains varied with differing supply and demand conditions driving diverse performance across the country.
“July’s tax cuts boosted borrowing capacities and buyers’ budgets, while the persistent growth in home prices is likely motivating some to overcome affordability challenges and transact.
“Though prices are rising, sustained high interest rates, cost of living pressures, weak consumer sentiment and affordability constraints are weighing. Buyers now have more properties to choose from, though uncertainty around the timing of interest rate cuts is likely also having an impact on the pace of growth.
“Ahead, prices are expected to lift through the typically busier spring selling season, albeit at a slower pace.”
The report also found that national home prices lifted 0.04% in September and are now 5.67% higher than a year ago.
Prices in the combined capital cities have increased 5.88% over the past year, but were flat in September.
Growth remained varied across the capitals, reflecting a multi-speed market.
Adelaide (+0.53%), Perth (+0.24%), and Brisbane (+0.20%) recorded the strongest growth in September, while Hobart and Melbourne were the only capitals to see prices fall over the month, with prices down 0.31% and 0.30% respectively.
Of the capital cities, Perth, Adelaide and Brisbane have recorded the fastest pace of growth over the past two years.
This trend persisted in September with Perth prices up 22.34% over the past 12 months, followed by Adelaide (+15.05%) and Brisbane (+13.31%).
Capital city prices have outpaced regional areas over the past year, but in September growth in regional areas (+0.11%) outpaced the combined capitals (+0.01%).
Performance was also diverse in regional areas.
Regional WA (+15.47%) and regional QLD (+10.98%) have led growth over the past year, while regional Victoria has recorded the largest falls year-on-year (-1.32%).
