Adelaide has suffered the biggest median home value drop of any capital city over the past month, new data shows, with values down for the third consecutive month.
According to realestate.com.au’s September Home Price Index, Adelaide’s median home value dropped 0.9 per cent or $7000 last month – and is down 1.6 per cent from its peak in May.
Adelaide’s median combined dwelling value – that of both houses and units – currently sits at $928,000, and is down from $935,000 last month.
Houses also took a hit – down 0.9 per cent or $6000 for the month from a $1.011m median to $1.005m.
Adelaide unit prices followed suit, dropping 0.6 per cent or $13,000 for the month from a $700,000 median to $687,000.
Despite this, values are still up over the past 12 months, with Adelaide’s combined dwelling price sitting 8 per cent or $75,000 higher than this time last year, its median house price 7.8 per cent higher or $80,000 more than last year, and its unit price 8.8 per cent or $45,000 higher than last August.
![Vailo Adelaide 500](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Adelaide’s median home values have dropped for the third consecutive month. Picture: Brenton Edwards
Report author, realestate.com.au senior economist Eleanor Creagh said national home prices had fallen for a fifth consecutive month in August as higher interest rates continued to constrain borrowing capacities and weigh on housing demand.
“While the pace of national price falls eased slightly in August, prices continued to decline across most capital cities,” she said.
“Momentum has slowed in markets that have been among the strongest performers over the past year, with Adelaide recording the largest fall in August.
“At the same time, the divergence between capital city and regional markets has widened.
“As affordability pressures are pushing demand toward cheaper markets and dwelling types, both regional and unit markets are proving considerably more resilient.”
Realestate.com.au senior economist Eleanor Creagh. Photo: Supplied
She said further price falls were likely to be seen over the coming months, particularly across the capital cities.
“Uncertainty around tax changes, the outlook for interest rates, and ongoing price falls, continue to weigh on confidence, keeping some buyers on the sidelines,” she said.
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Homes in regional SA, however continued their value climb.
Regional SA’s median combined dwelling value rose 0.2 per cent or $8000 over the last month to a new peak of $535,000.
Houses are also up – 0.2 per cent or $10,000 for the month to a $544,000 median, and units sit 0.3 per cent higher than last month at $473,000.
Their 12-month growth is also solid, with regional SA’s combined dwelling price sitting 12.3 per cent or $68,000 higher than was reported this time last year; its median house price also 12.3 per cent or $71,000 higher than last year, and its unit price 12.1 per cent or $48,000 more than last July.
“The housing downturn remains orderly, but increasingly uneven, with regional markets proving considerably more resilient than the capitals,” Ms Creagh said.
Turner Real Estate managing director Lachlan Turner said buyers were still purchasing, just not at the same level they were during the market’s boom.
“From the coal face, our sales partners report less buyers attending open inspections, a strong bias towards properties that are marketed at a reasonable value, an extended ‘time on market’ and on a positive note, that properties are selling,” he said.
Turner Real Estate managing director Lachlan Turner
He said the investment market was still performing strongly.
“Adelaide’s rental yield sits at 3.5 per cent, ahead of Sydney and Brisbane, so there’s still positive opportunities for investors weighing up growth against income,” he said.
“Annual rental growth is up by 5.3 per cent year-on-year, adding the equivalent of around $30 per week to the median rent.
“Nationally, vacancy rates also remain below the long-term average at 1.7 per cent, supporting steady demand for investors.
“The vacancy rate for properties we manage … is 0.7 per cent.”