Joel Bowman, a senior economist at Domain, described the recent changes in the housing market as “remarkable” and noted a surprising trend: “It seems buying a home in Adelaide has become more expensive than in Melbourne.”

In Adelaide’s Onkaparinga region, the suburb of Hackham West experienced a staggering property value surge of 152.8 percent.

Throughout Australia, areas that once offered affordable real estate have seen the highest growth rates. This trend has proven beneficial for property owners in these suburbs, significantly boosting their asset values.

However, the situation presents a different reality for renters and prospective homebuyers, highlighting a growing disparity in the property market. “This trend underscores the widening gap between those who have property and those who do not,” said Bowman.

Across Australia, suburbs with the highest growth were concentrated in once-affordable areas.

For property owners in these suburbs, the report signals a boon for their assets. But for renters and aspiring home buyers, it’s a different story.

Housing affordability crisis

“It definitely speaks to a widening in the divide of the haves and have nots when it comes to the property market.”

“During the pandemic, we had a lot of people leaving Melbourne, but we have started to see this trend reverse as the city has become a lot cheaper, comparatively.”

What’s driving skyrocketing house prices?

“The other thing we’re seeing is the tight rental markets. A surge in population in these areas resulted in record-low vacancy rates across Australia. Low vacancy rates are pushing up these property prices.”