Adelaide homes have continued their display of strength on the national stage, with a new report revealing price growth across the city was the highest in the country.

PropTrack’s latest Home Price Index, released today, shows Adelaide home prices rose 0.53 per cent in September, this year, recording the greatest growth of all capitals.

It means the average home now transacts for $778,000, sitting just $14,000 behind Melbourne’s median.

PropTrack senior economist and report author Eleanor Creagh said Adelaide home prices had surged since the onset of the pandemic due to their relative affordability.

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“Adelaide was the top performing capital city in September, as home prices rose 0.53 per cent to a new peak, up 15.05 per cent year-on-year,” she said.

“Though growth has slowed, low stock levels are intensifying competition, and sellers hold the upper hand this spring.

“Although the number of properties hitting the market has increased, total stock on market remains well below the prior five-year average as new listings are quickly absorbed amid strong buyer demand.

“The comparative affordability of the city’s homes has contributed to the ongoing strong growth of recent years, though if current trends persist, values may eclipse Melbourne by the first quarter of next year.”

PropTrack senior economist Eleanor Creagh

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Nationally, home prices lifted 0.04 per cent in September and are now 5.67 per cent higher than a year ago.

Perth and Brisbane recorded the strongest growth in September at 0.24 per cent and 0.20 per cent, respectively, behind Adelaide, while Hobart and Melbourne were the only capitals to see

prices fall over the month.

“July’s tax cuts boosted borrowing capacities and buyers’ budgets, while the persistent growth in home prices is likely motivating some to overcome affordability challenges and transact,” Ms Creagh said.

“Though prices are rising, sustained high interest rates, cost of living pressures, weak consumer sentiment and affordability constraints are weighing.

“Buyers now have more properties to choose from, though uncertainty around the timing of interest rate cuts is likely also having an impact on the pace of growth.

“Ahead, prices are expected to lift through the typically busier spring selling season, albeit at a slower pace.”