In news carrying mixed implications for homeowners and prospective buyers alike, median home prices across South Australia and its metropolitan areas recorded a notable increase of AUD 50,000 over the past three months, pushing values to record-high levels.
According to the latest quarterly report issued by the Valuer-General for the fourth quarter of the year, the median house price in South Australia rose by 6.25% to reach AUD 850,000. Meanwhile, the Adelaide metropolitan area saw average prices increase by 5.71% to AUD 925,000.
Over the past year, median prices in South Australia climbed by 10.39%, or approximately AUD 80,000, while Adelaide’s metropolitan area recorded an annual rise of 8.82%, equivalent to around AUD 75,000.
During the most recent quarter, a total of 6,767 property sales were recorded, surpassing both the previous quarter’s figure of 6,307 transactions and the final quarter of 2024, which saw 6,580 sales.
Andrea Heading, Chief Executive Officer of the Real Estate Institute of South Australia, pointed to the strong performance of the state’s property market, stating that the market has experienced steady growth and stabilized at a high level. She added that these results are positive for homeowners, as they help preserve property value gains rather than erode them during sharp downturn cycles.
She also emphasized that current values are driven by genuine demand rather than short-term speculation, which provides consumers with confidence to make sustainable investment decisions.
The report also revealed that median values for metropolitan units rose by 2.27%, or around AUD 15,000, over the past quarter, and by 12.5%, or AUD 75,000, year-on-year, reaching an average of AUD 675,000. Despite this segment historically being more prone to sharp declines, its performance over both periods was particularly notable.
Meanwhile, Mike Louw, Director of Edge Realty, explained that rising prices in the Eyre region can be attributed to the release of new and attractive residential properties onto the market. He added that government incentives and home ownership assistance programs have played a key role in attracting buyers.
Despite the significant price increases, Louw stressed that the market still offers good value for buyers, pointing to one auction where a property in Elizabeth sold for AUD 915,000.
Looking ahead, Heading noted that the market continues to present positive opportunities for homeowners in South Australia, supported by strong backing for property ownership and limited supply relative to growing demand.
In terms of top-performing local council areas within Adelaide, Adelaide Hills led the way with a quarterly increase of 15.5%. However, areas such as Holdfast Bay recorded the strongest annual growth in value at 18.3%, despite a slight decline during the same quarter.
As for regional areas, Naracoorte stood out with the highest increase in values over both the past three months and the past year. Prices rose by AUD 75,000, or 19.74%, during the latest quarter to reach AUD 455,000, while annual values increased by a total of AUD 133,000.
