Adelaide’s suburban expansion is showing no signs of slowing, with several areas experiencing significant growth driven by population increases and more affordable home prices.
PropTrack’s latest Property Market Outlook indicates that Adelaide has recorded the highest value growth of any state over the past five years, with an entry level home now costing an average of $895,000.
That’s an increase of 80.9 per cent over the five years to November, in comparison to an average growth across Australia’s combined capital cities of 43 per cent.
Continued growth, however, is contrary to cost-of-living pressures and mortgage stress levels facing many borrowers and prospective buyers.
Herron Todd White Senior Residential Valuer Nick Smerdon said this had pushed more buyers to cast their eye to Adelaide’s outer metropolitan ring and lifestyle markets, where value for money was still a real possibility.
RELATED
Listed: Adelaide’s last bargain homes under $250k
10 surprise markets set to make investors millionaires
‘When will it end’: Adelaide records blistering price growth
![Supplied Real Estate 15 Ferris Street, Davoren Park has been listed for sale with an
auction price guide of $480,000](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
15 Ferris Street, Davoren Park has been listed for sale with an auction price guide of $480,000. With its blue facade and budget price, it’s sure to leave an impression with buyers.
“The outer ring continues to be driven by a combination of first home buyers seeking a more affordable price point, and investors looking for rental returns,” he said.
“The outer ring suburbs such as Davoren Park, Elizabeth North and Elizabeth Downs offer the chance to purchase a three-bedroom home between $425,000 and $500,000 approximately 30km from the Adelaide CBD.
“Further to this, the Hills market offers purchasers a mix of lifestyle and affordability, albeit moving up in price point from the outer ring northern suburbs.
“Suburbs such as Nairne, Bridgewater and Mount Barker offer alternative options with larger homes on larger blocks, approximately 20km to 30km from the CBD.”
According to PropTrack, buyers can also get bang for their buck in Evanston, Evanston Gardens, Munno Para, Woodville Gardens, Salisbury and Andrews Farm were the average home still changes hand for under $600,000.
MORE NEWS: Major SA berry farm closed, ALL staff fired
20 Loftis Road, Elizabeth Downs is on the market with a price guide of $379,000 to $415,000. It’s the perfect entry level home for first homebuyers.
In the Adelaide Hills, Mount Barker is the most affordable locality with a median house price of $694,000.
Next in line is Lobethal with a $600,000 median, followed by Meadows ($737,5000) and Nairne ($795,000).
With 2025 an election year, Mr Smerdon said buyers could expect some relief – including new housing policies – as political parties sought to attract voters.
“Towards the end of 2024, federal housing minister Clare O’Neil was interviewed on youth radio station Triple J, responding to the argument that young people and first home buyers would be hopeful of not only a stagnation, but a reduction in house prices,” Mr Smerdon said.
“To this, O’Neil stated that the government was targeting more sustainable house price growth, as opposed to the double digit increases we have seen in years gone by.”
MORE NEWS: ‘Don’t wait’: Agent’s stark warning to struggling first homebuyers
9 Symonds Drive, Mount Barker has been listed for sale with a price guide of $595,000 to $639,000. It’s marginally cheaper than the average metro home.
Independent economist, Saul Eslake, and Deloitte Access Economics partner, Stephen Smith, were of similar viewpoints in response to O’Neil’s comments.
Eslake stated that a stagnation in prices, or a decline of five to ten per cent over a decade would be beneficial for the broader market and society, while Smith believed that prices would need to stay put for the next 10 to 15 years as wages catch up.
“With the current state of the market, the upcoming interest rate decisions, and the federal election, it’s shaping up to be an interesting year for potential purchasers, investors and homeowners alike,” Mr Smerdon said.
