Adelaide now fourth most expensive capital for buying a house

Adelaide's housing market is defying national trends, recording the fastest median house price growth among Australian capitals in the June quarter. The city's median house price has hit a record $1.125 million, a significant increase from $970,165 a year ago, marking a 4.8 percent rise in just the last quarter.

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We saw an acceleration in house price growth, with momentum strengthening both over the quarter and over the year, and that is not what we've seen in other capital cities.

Dr. Nicola Powell, chief of research and economics for Domain, noted that Adelaide's momentum in house price growth has strengthened over both the quarter and the year, a pattern not observed in other major cities. This surge places Adelaide as the fourth most expensive capital for buying a house in Australia, trailing only Sydney, Brisbane, and Perth.

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Adelaide also still has one of the tightest rental markets in Australia, and that has flow-on effects also to pushing demand quicker into purchasing.

Powell attributes the national price fluctuations to increased housing supply, which has risen about 17 percent across the country's capitals. However, Adelaide's local supply has only grown by six percent in the past 12 months, contributing to its market's unique trajectory. Furthermore, Adelaide continues to have one of the tightest rental markets in Australia, which is likely pushing more demand into purchasing properties.

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The numbers are less, so now, you've got some nice properties, you've got to price them properly, you've got to be prepared to adjust them, and you've got to work hard with the buyer.

Despite the strong median price figures, some real estate professionals are observing a shift on the ground. John McRostie, principal of Belle Property Real Estate, reported low turnout at open inspections and auctions, particularly among investors, indicating a potential lack of buyer confidence. He suggests that sellers may need to reconsider their pricing strategies and work harder to engage buyers. McRostie also highlighted Adelaide's appealing lifestyle and livability, which contribute to its desirability, but questioned the sustainability of such rapid price increases.

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It's great to see the average price in South Australia to be quite buoyant. Adelaide is a great place to live. It's just a nice lifestyle; it's different from Melbourne and Sydney. Adelaide deserves it.