Adelaide’s house prices dipped in the September quarter, but it was one of the few capital cities to record an increase in median unit prices.
According to Domain’s State of the Market Report for September released today, Adelaide has seen a marginal decline in house prices, with the median price down by 0.3% to $519,517.
Meanwhile, unit prices jumped 1.6% to $313,074 which is 2.6% higher than the same time last year.
The median house rental price remained steady for the quarter at $360 per week, up 2.9% year-on-year. Median unit rental prices increased 1.7% to $295 per week.
“Second only to Hobart, Adelaide has one of the most affordable median house prices of all capital cities, and the most affordable median unit price,” said Domain Chief Economist, Dr Andrew Wilson.”Despite experiencing a drop in median house price over the quarter, the solid local market provides investors with growing confidence as it continues to deliver resilient results.”
Despite the slight drop this quarter, Adelaide’s house prices have grown for the previous five quarters, giving the city a reputation for a safe and solid return on investment. It also has some of the most affordable prices of all Australian capital cities, making it attractive to first home buyers.
Looking nationwide, the median house price declined by 0.5% over the September quarter to $819, 455. This is the first quarterly fall since December 2015 and the sharpest drop since September 2011, suggesting that the market is indeed cooling.
“Generally weaker capital city house price growth over the September quarter is reflected in the national results. House price growth is expected to continue to ease in most capital cities over the remainder of the year, although the underlying drivers remain positive,” Dr Wilson said.