December 2022 Quarter - Adelaide

Posted By David Brown

In 2022, the housing market in Adelaide, Australia, experienced notable growth with record high house and unit prices. Adelaide emerged as the only capital city market in the country to end the year on a positive note, with property prices in the region surpassing those of other Australian cities. However, despite the positive growth, the market is facing challenges such as affordability constraints, reduced borrowing capacity, and an extremely tight rental market. This article will delve into the details of the Adelaide housing market in 2022, highlighting its growth, trends, and challenges.

Adelaide emerged as the sole capital city market in Australia to close out 2022 with historically high house and unit prices, owing to positive growth during the December quarter. However, the market's upswing is losing momentum as quarterly house price growth is at its lowest since mid-2020, leading to an annual growth rate that is nearly a two-year low. Moreover, the annual growth in unit prices has also slowed down for the first time in over a year. Despite this, unit prices are still performing better than house prices, which is narrowing the price gap between the two property types, a trend that began in mid-2022. This trend may persist due to factors such as affordability constraints, reduced borrowing capacity, an extremely tight rental market, and an expected return of migration, all of which are expected to support unit prices.

Domain House Price Report - December 2022 | Domain

The Adelaide housing market in 2022 experienced a period of strong growth, ending the year with record high house and unit prices. Adelaide stood out as the only capital city in Australia to achieve positive growth in the housing market. However, the market's upswing began losing steam towards the end of the year, with quarterly house price growth slowing down to a two-year low. The unit prices also showed signs of slowing down, but they continue to outperform house prices, narrowing the price gap between the two property types. Moving forward, the Adelaide housing market faces challenges such as affordability constraints, reduced borrowing capacity, and a tight rental market. Nonetheless, the expected return of migration and other supportive factors will likely continue to drive growth in the Adelaide housing market.