Adelaide’s Market Surge

Hotspotting

Adelaide’s property market, one of the nation’s strongest in the past two years, has strengthened further recently.

ales volumes shows that market activity in the June quarter was the highest for Greater Adelaide since mid-2022.

The June Quarter sales levels represented a 25% increase on the March Quarter and were 10% higher than the same time last year.

This is despite the reality that listings of homes for sale across Adelaide are the lowest at any time in the past 15 years, according to SQM Research figures.

This continues Adelaide’s track record as a market with consistently high performance and helps to explain why it has been a challenger to Perth as the market with the highest price growth in the past two years.

Adelaide’s median house price rose 15% in the 12 months to August 2024, while the median unit price increased 12%, according to PropTrack data.

Only Perth has recorded higher annual price growth.

Across the Greater Adelaide market, suburbs with positive trends with sales activity outnumber those with negative ones by a factor of three to one.

The Greater Adelaide area has standout markets across all price ranges, including affordable municipalities like Playford and Salisbury, middle market areas including Marion and West Torrens, and more upmarket locations such as the Unley, Holdfast Bay and Charles Sturt LGAs.

The Playford LGA, which contains Adelaide’s cheapest suburbs, is the most popular precinct for buyers, with over 800 dwelling sales in the June Quarter. That was 31% higher than the same time last year – and a 53% increase on the March Quarter.

Most Playford suburbs have positive sales trends, either rising or consistent, with Blakeview and Davoren Park in particular standing out for their consistent buyer demand. The median house price for Blakeview has risen 16% to $550,000 in the past 12 months, while Davoren Park is up 33% to $440,000.

Davoren Park had a median house price of just $175,000 three years ago.

The neighbouring Salisbury LGA, another precinct targeted for its affordable homes, is also a strong performer with sales levels considerably higher than the March Quarter and also the same time in 2023. Rising markets in the City of Salisbury are headed by standout suburbs like Ingle Farm and Mawson Lakes.

The median house price for Ingle Farm was $380,000 three years ago and is now $655,000, after 19% growth in the past 12 months.

Another outer-ring location with outstanding numbers is the Mount Barker LGA, which has recorded the highest quarterly sales numbers in more than three years. The suburbs with strongly rising sales activity include Nairne and Mount Barker. Nairne’s median house price has risen 17% to $750,000 in the past 12 months.

Among the middle market areas, the West Torrens LGA is a notable performer with a significant increase in sales activity in the June Quarter – the highest levels since late in 2021. There are no suburbs with negative trends in West Torrens, while rising markets are headed by Underdale, Torrensville, Plympton and Fulham.

The Port-Adelaide Enfield LGA has numerous suburbs with positive ratings, with sales activity overall much higher in the June Quarter compared to the March Quarter and the same time last year. Notable rising markets include Lightsview and Blair Athol.

The City of Marion has recorded its highest quarterly sales numbers since mid-2022 in a market dominated by suburbs with positive sales trends, including rising suburbs Warradale, Hallett Cove and Edwardstown. The median house price for Hallett Cove has risen from $470,000 to $800,000 in the past four years.

Some of Adelaide’s more upmarket precincts are also travelling well. Ten of the suburbs in the Charles Sturt LGA are ranked as rising markets, headed by Flinders Park, Findon and Bowden.

Sales activity has been rising steadily in the Holdfast Bay municipality in the past four quarters. A standout feature is that the unit markets in both Glenelg and Glenelg North are classified as rising markets in our latest analysis.

The upmarket City of Unley has a particularly strong June Quarter, with sales numbers up almost 50% on the March Quarter. Rising suburbs include Parkside (median house price $1.3 million), Clarence Park ($1.27 million) and Myrtle Bank ($1.6 million).

The overall conclusion is that the Adelaide market continues to pump strongly and is likely to be a national market leader on price growth for the foreseeable future.