After years of gradual value growth, South Australian homes have recently seen significant record increases over the last five years.
Adelaide home values: potential worth by 2029 :
What would the real estate landscape look like if that growth continued over the next five years?
PropTrack has analyzed the data, and frankly, the results are quite alarming.
According to their figures, which PropTrack emphasizes are not a forecast, but rather an application of past percentage changes,
if the previous five years’ growth of 56 percent occurs again, Adelaide’s median house price in 2029 could exceed $1.143 million.
Additionally, the median house value has risen significantly, increasing from $470,000 in April 2019 to $733,000 as of this year.
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If history repeats itself, Adelaide’s median unit price is expected to surge significantly as well.
In 2019, the median unit price was $350,000, but it has now increased to $485,000, reflecting a 39 percent rise.
If this growth trend continues, units could potentially reach a value of $672,071, surpassing the median-priced houses from five years ago.
Houses in regional South Australia have also experienced substantial growth, climbing 51 percent from a median of $271,750 to $410,000.
If this growth is repeated, regional houses could be valued at approximately $618,583 in the near future.
Furthermore, regional unit prices could also see a significant increase, potentially reaching $490,122.
This projection is based on the past five years, where median prices rose from $271,750 to the current $410,000.
PropTrack senior economist Paul Ryan indicated that the data reveals a significant increase in property values during a challenging global period.
This period includes the impacts of COVID-19 and interest rates at “emergency low” levels.
“We analyzed current median prices across all suburbs and then projected what prices might look like if the trend continues,” Mr. Ryan explained.
“These are not forecasts, but rather a useful thought exercise to understand the exceptional growth we’ve observed over the past five years.”
When examining median combined dwelling prices—which encompass both houses and units—Elizabeth North in Adelaide’s north appears poised for the highest increase.
The median dwelling price in this suburb has risen dramatically by 131 percent, going from $175,000 to $405,000 over the past five years.
If this growth trajectory persists, the median price could potentially soar to an astonishing $937,000 by 2029.
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Neighbouring Elizabeth Downs and Elizabeth South are projected to experience significant growth, with increases of 125 percent and 120 percent.
This would raise their median prices to approximately $911,000 and $857,000, respectively.
According to the projections, 191 suburbs in Adelaide could see median values exceeding $1 million.
Edge Realty principal Mike Lao, who operates in Adelaide’s northern suburbs, remarked that the growth over the past five years has been “crazy.”
He noted, “This has been the biggest boom in 30 years, which has been fantastic, but it has cooled somewhat now.”
Lao added, “We were previously underpriced and offered great value, and now the secret is out.”
He concluded, “No one could have predicted a boom of this magnitude, but I believe growth will continue at a more measured pace.”
Factory worker Christine Romano, 56, purchased a home in Elizabeth North in 2021 after renting in Davoren Park.
“I had been renting for about 15 years, and my mum said, ‘I’m tired of you spending money on rent; I want you to buy a house,’” she recalled.
“I’m grateful I bought when I did—it’s an asset, and I hope to see its value increase.”
Mr. Ryan stated that Adelaide’s affordable northern suburbs have excelled over the past five years.
“You can clearly see how the focus on affordability has greatly benefited Adelaide, Perth, and Brisbane,” he explained.
“During the pandemic, people realized just how affordable Adelaide was for the lifestyle it offers.”
He added, “There’s still much to consider regarding Adelaide’s relative affordability, which has increased by 14 percent over the past year.”
