For years Adelaide residents have been able to clap back at our Melbourne neighbours with a: “Yeah, well at least our houses are cheaper than yours.”
Well, those days, sadly, are over, as a new report reveals Adelaide’s median house price has overtaken Melbourne’s for the first time in history.
According to REA Group’s April Home Price Index, released today, Adelaide’s median house price currently sits at $1.016m – $1000 more than Melbourne’s, which is now at $1.015m.
The landmark overtaking comes after Adelaide’s median house price recorded a 0.5 per cent value increase over the past month, and a 15.3 per cent jump over the past year.
Adelaide’s median house value has surpassed Melbourne. Picture: Brenton Edwards
While Melbourne experienced a greater jump than Adelaide over the past month – 0.6 per cent – its 12 month increase is considerably lower than Adelaide’s at just 4 per cent.
Adelaide’s combined dwelling price sits at $937,000 – eclipsing that of Melbourne by $78,000, with Adelaide’s figure up 14.6 per cent or $120,600 on this time a year ago.
In the shorter term, Adelaide’s combined dwelling price is up 0.4 per cent over the past month.
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Report author, REA Group senior economist Eleanor Creagh said while prices rose nationally in March, growth was slowing.
“Momentum has eased, with more than three quarters of SA4 regions recording a deceleration in monthly growth relative to February,” she said.
“This points to a slowdown in growth emerging across the country and a clear turning point in the cycle, as rising interest rates weigh.
“While price declines remain limited, they are beginning to emerge in some inner and middle-ring markets, most notably in Sydney and Melbourne.”
REA Group senior economist Eleanor Creagh
She said interest rates, and the uncertainty around future rises, would impact the market.
“Recent rate rises will weigh on buyer sentiment, borrowing capacity, and erode already poor affordability, though a resilient labour market, population growth and first-home buyer support continue to underpin demand against limited supply,” she said.
“Overall, the market is shifting into a slower-growth phase, with a rising likelihood of flat or declining prices in some markets in the months ahead, even as structural supply shortages cushion the moderation”.
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Regional SA values continue to shine, with combined dwelling values up 0.6 per cent for the month, 12.2 per cent or $54,500 for the year and 95.4 per cent over the past five years.
Its combined dwelling median is $504,000.
Regional SA’s median house price sits at $512,000 – also up 12.2 per cent for the year, or $55,600 – while units continue to offer a more affordable entry point at $456,000, despite gains of 0.3 per cent over the past month and 12.7 per cent over the past quarter.
While both Adelaide and regional SA combined dwelling prices are at historic highs, Melbourne’s has dropped 0.2 per cent from its November high.
Turner Real Estate managing director Lachlan Turner
Turner Real Estate managing director Lachlan Turner said the market was still rewarding investors.
“Investors are finding continued success in a historically tight rental market,” he said.
“Weekly asking rents for houses have increased 4.1 per cent year-on-year to $710, while units have seen a significant increase of 8.2 per cent to $565.
“As vacancy rates hover near record lows, the competition for quality rental stock remains a significant factor for the local market.”
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