The surprising Australian capital city leading price growth over past decade revealed

Adelaide homeowners once had to hold onto a property for decades before they reaped the rewards of any meaningful growth.

That’s not the case anymore, with new data revealing those who purchased just 10 years ago are benefiting from more growth than those in any other Australian capital.

House prices across the metropolitan area have climbed an average of 7.3 per cent each year over the past decade to a median of $850,000, according to latest PropTrack data.

REA Group senior economist Anne Flaherty said it was a huge amount of growth, “particularly when you think about what the dollar value of that percentage growth means.”

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Adelaide house prices have climbed an average of 7.3 per cent each year over the past decade, latest PropTrack data shows.

“I think Covid was the first thing that kick started it,” she said.

Ms Flaherty said it was always a consistent market with low growth levels, but the big shift came when people stopped leaving the state for others around the country.

“The pandemic was the first time in decades when we saw that trend reverse,” she said.

An influx of people moving to SA, particularly from Melbourne, increased the pressure on housing and led prices to surge, Ms Flaherty said.

A similar trend happened in Hobart and Brisbane. “That drove a massive escalation in prices,” she said.

“We know Queensland was the state that saw the strongest interstate migration (during Covid) and Brisbane is experiencing the strongest population growth now,” Ms Flaherty said.

According to the data, Hobart was hot on Adelaide’s heels, with prices rising 7.2 per cent annually over the past 10 years to a $710,000 median, followed by Brisbane (7.1 per cent to $945,000), Sydney (6.2 per cent to $1.5m) and the ACT (5.6 per cent to $960,000).

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REA Group senior economist Anne Flaherty.

Melbourne, Perth and Darwin recorded the lowest annual growth over 10 years – 4.3 per cent to $852,000, 4.1 per cent to $815,000 and 1.1 per cent to $585,000 respectively.

Meanwhile, Adelaide also took out the title for the highest rate of growth over the past five years, with house prices surging 77.8 per cent.

Brisbane (73.4 per cent), Perth (72.7 per cent), Sydney (59.2 per cent) and Hobart (37.9 per cent) rounded out the top five.

The ACT followed closely behind Hobart, with 37.1 of growth, followed by Darwin at 33 per cent and Melbourne at 14.8 per cent.

Real Estate Institute of South Australia chief executive Andrea Heading said migration wasn’t the only factor that led to Adelaide’s price growth – affordability also played a large part.

“People were moving (from interstate) with more disposable incomes,” she said.

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Real Estate Institute of South Australia chief executive Andrea Heading.

“It’s good buying when you’re looking at it through interstate eyes.

“There has also been a number of investors who have come from other markets looking at value for dollar.”

Ms Flaherty said Adelaide’s strongest years of growth appeared to be behind it, however Ms Heading said the Federal Government’s new 5 per cent deposit scheme might stimulate it again.

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