Adelaide houses are tipped to experience the second-highest value growth in the nation over the next 12 months, a new report reveals.
Adelaide’s property prices are tipped to experience the second-highest value growth in the nation over the next financial year, despite values being expected to rise at a slower rate.
According to PropTrack’s Property Market Outlook Report, Adelaide home values are up 12.9 per cent over the financial year to date – second only to Perth, where home values soared by 18.9 per cent.
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Adelaide’s houses are tipped for solid, but tempered growth in the next 12 months. Picture: Stephen Brookes
However, the growth Adelaide’s houses experienced over the past financial year is not tipped to be repeated, with the report indicating property owners in the City of Churches can expect to see projected growth of between 5 per cent and 8 per cent in FY24/25.
This is the second highest projected growth behind Perth, where values are tipped to rise by between 8 and 11 per cent.
According to the report, Adelaide’s strong value growth can be attributed to high demand and low supply, with the number of properties here listed for sale on realestate.com.au dropping by 8.7 per cent annually in May – the second highest of any capital – and homes selling in 23 days in May, down from 27 days this time last year.
This is the shortest time on market of any capital city.
PropTrack’s Cameron Kusher. Supplied.
PropTrack Director of Economic Research and report author, Cameron Kusher, said the market was strong.
“Forecasting home price growth for the year ahead becomes increasingly challenging as we
observe a property market that is proving to be far more resilient than anticipated,” he said.
“Buyer demand remains strong despite interest rates sitting at 12-year highs, borrowing
capacities falling and the volume of stock for sale increasing, leading property prices to rise at a faster rate than expected.
The effect of the Prime Minister’s Stage 3 tax cuts on the market remain to be seen. Picture: NewsWire / Martin Ollman
“Over the next financial year, the introduction of Stage 3 tax cuts and projected interest rate
cuts have the power to further entice buyer demand while supply from new dwelling
commencements and completions are expected to remain low.”
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