Buyers are turning to units in two of SA’s major regional cities as houses fast become unaffordable.
Murray Bridge and Mount Gambier each recorded 20 per cent or more growth in their median unit prices throughout 2025 on the back of increased demand, latest PropTrack data shows.
Both are regional centres that were known for having cheap housing markets just a few years ago but prices have surged since the Covid pandemic.
Unit values rising at a faster pace than those of houses is a trend emerging across metropolitan Adelaide, but this is the first signs of that trend extending to regional areas.
Murray Bridge was third on the list of SA’s top growth areas last year, with its median unit price jumping 23 per cent to $455,000.
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The unit trend seen across Adelaide has extended to regional SA cities.
Unit prices in Murray Bridge and Mount Gambier each recorded more than 20 per cent growth in 2025.
First National Real Estate Murray Bridge director Sylvia Presepio said more affordable properties, including attached housing and strata or community titled homes, were attractive to investors and young buyers keen to make the most of the rent return.
“They are going up because they are affordable to invest in and the rent’s there,” she said.
“The rents are slowly creeping up too.”
Ms Presepio said prices were rising across the board in the city – a trend that didn’t look like it was going to stop any time soon.
“Anything up to $650,000 is moving pretty steadily,” she said.
“We don’t know how it’s going to stop, to be honest.”
The next interest rate decision in February might have an impact on the market, Ms Presepio said, depending on the result.
Further South, Mount Gambier’s median unit price rose 20 per cent to $406,000 in 2025.
Ray White Mount Gambier principal Tahlia Gabrielli said people were being forced to make sacrifices as prices continued to rise, and size was usually what they were most willing to give up.
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The Murray Bridge unit at 2/4 Alice Tce sold for an undisclosed price in November.
The Mount Gambier unit at 3/42 Ferrers St is listed for sale with a $499,000 to $549,000 price guide.
“It comes down to affordability and serviceability and the reality of what we’re seeing is there’s much more demand for units because they’re cheaper than houses,” she said.
“But, it depends on the type of unit.”
As people were becoming more time poor, Ms Gabrielli said many were willing to give up big yards and gardens for more low maintenance options.
A desire to travel more also made people consider where they could save some cash to fund trips, she said.
“People are assessing all those components now,” Ms Gabrielli said.
Home values were rising right across the market, she said, but they were rising at a faster rate for properties under $650,000.
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