Australia’s red hot property boom is finally over, but there is one place in the country that is just getting started with prices predicted to soar.
Australia’s booming property market has finally fallen over but one surprising city is bucking the trend with prices expected to continue to take off.
While house prices across the country rose by just 0.3 per cent in March and even fell in places like Melbourne, one unlikely Australian state is beating the price drop, according to new research from REA Group’s data business PropTrack.
Price growth in Adelaide was the highest across the country in March recording an 0.8 per cent increase, while regional South Australia performed even better with values rising by 1 per cent.
Adelaide prices also increased by 25 per cent over the past year – more than twice the rate seen this time last year, the report found.
Paul Ryan, PropTrack economist, described Adelaide as a “late bloomer” when it comes to Australia’s red hot property market.
“I think the Adelaide market seems to have the strongest momentum out of all places in Australia. I think it’s been a late bloomer in the property market boom and it’s got the same ingredients that have benefited other regional and lower-priced areas,” he told news.com.au. “It has relative affordability, the lifestyle benefits of bigger homes and a more relaxed atmosphere in a smaller city, as well as all the things that make regional or South Australia a good tourism destination.
“These are things that people can take more advantage of if they have more work from home flexibility.
“Adelaide is having a bit of a moment in the sun. It’s traditionally a boring market so it’s quite an exciting period for them.”
The median value of a house in Adelaide is just $548,000.
Over the past year, notable standouts for prices rises have also included Brisbane, regional NSW and the Australian Capital Territory, with regional Queensland also performing strongly, the report found.
These areas are benefiting from the lifestyle shift craved by Aussies during the pandemic as they looked for bigger homes in more affordable areas.
Canberra has been the strongest performing capital city housing market over the past year recording a whopping 26.4 per cent increase in house prices to reach a median value of $834,000.
Regions surrounding the ACT in NSW such as Queanbeyan and Goulburn are also seeing strong price growth, Mr Ryan added.
Overall, regional areas also continue to outperform the capitals in the post-pandemic market.
Prices have increased 25 per cent in the past year in regional areas, compared to just 16 per cent in the capitals.
But Mr Ryan said this could all change.
“Now that the borders have opened and immigration has resumed and investors have come back into the market, this could have an impact, as well as more workplaces forcing people to return to the office. So we could see these lifestyle preferences reverse,” he said.
“That would reverse that trend towards regional areas and parts of Queensland experiencing price rises going forward.”