House prices grew faster in Adelaide last month than in any other Australian capital city, bucking a trend that saw national property prices fall for the first time in 20 months.
According to CoreLogic data, Adelaide’s Home Value Index increased by 1.8 percent last month to a median price of $628,744.
This equated to a 5.7 percent increase in the past quarter and an annual change of 26.1 percent.
The eastern suburb of Beaumont has had the highest growth in the past 12 months, increasing its median house price by 43.8 percent to $1,783,745.
Regional SA prices also increased by 1.3% for the month and 6.2% for the quarter, higher than any other state.
The increases are despite the first interest rise in more than a decade at the start of May and have traveled in the opposite direction to property price movements interstate.
A combination of low supply and high demand is fuelling Adelaide’s growth.
From the supply side, advertised stock levels were almost 40% below the five-year average at the end of May, while Brisbane (-38.2 percent) and Perth (-34.7 percent) are also well down.
On the demand side, home sales in Adelaide were estimated to be 32% above the five-year average.
Although prices continue to rise faster than in any other capital city, there is some evidence that conditions are starting to slow down.
Based on the ongoing three-month change in home values, the peak rate of growth was recorded in January at 7.4% and has since reduced back to 5.7% over the most recent three-month period.
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