The post pandemic boom continued into the 2023/2024 financial year, with Adelaide house prices increasing at one of the highest rates nationwide.
With high demand and limited supply of properties, meant Adelaide’s house prices continued to grow at the second highest rate in the country since February 2020, according to a report by CoreLogic.
Perth has seen the highest increase in property values since 2020 at 62.6%, closely followed by Adelaide at 61% and Brisbane at 59.8%.
CoreLogic data shows Adelaide median property values in May 2024 remain lower than the eastern states although the gap, particularly with Melbourne, is lessening:
- Sydney $1,156,020
- Brisbane $843,231
- Canberra $840,100
- Melbourne $780,437
- Adelaide $757,448
- Perth $736,649
- Hobart $655,170
- Darwin $502,120
The PropTrack Home Price Index indicates annual growth to May 2024 of 14.76% in Adelaide and 11.98% in the rest of SA.
Mortgage Interest Rates
It was a better year for mortgage holders than the previous twelve-month period which saw crippling interest rate rises. The cash rate did increase during the past year from 4.10% to 4.35%, but it has remained steady at 4.35% since December 2023.
Rising inflation during 2023/2024 has meant the predicted interest rate cuts during 2024 haven’t been seen as yet, with the Reserve Bank advising they are unlikely to drop interest rates until inflation is within the targeted 2-3% range. Still, we remain hopeful that mortgage rate cuts will be seen late in 2024 or early in 2025.
The Rental Property Market
Adelaide’s rental property market continued to see unprecedented low vacancy rates and inflation-fuelled rent increases, making it a difficult year for tenants.
High rents coupled with Adelaide’s 0.83% vacancy rate - the lowest vacancy rate in the country below the national average of 1.08% - contributed to our statewide housing crisis.
According to PropTrack data, the average South Australian home currently rents for about $550 per week, an increase of 9.5% on the same period last year.
Our Property Management Team are always available for a chat if you’re considering using a property management service for your investment property, or making changes to your current property investment portfolio.
First Home Buyer Benefits
In June 2024, the Malinauskas Government removed the property value caps associated with the $15,000 First Home Owner Grant. They also abolished stamp duty for first home buyers who buy a new home, an off-the-plan apartment, a house and land package or vacant land to build a new home.
The strategy aims to save first-home buyers tens of thousands of dollars, providing a much-needed boost to help them get a foot in the door of our booming property market.
Changes to Rental Legislations
South Australians will soon be seeing the biggest update of rental laws since they were introduced nearly 30 years ago. These changes will improve protections for renters and ensure landlords can manage properties effectively. Recently, reforms were put into place to ensure rent can't be increased more than once in 12 months, as well as changes to rules regarding rental bonds and sub-letting. All of these reforms are in favour of renters to ensure their rights are protected.
In July 2024, the biggest changes are set to be announced and become fully operational. These laws will be supported by a new Tenants' Advice and Advocacy Service. Some of these changes include clearer guidelines around pet ownership, longer notice periods and caps on routine inspections. Stay updated by connecting with us online or chat to one of our friendly Property Managers.
