SA Regional Home Prices Rise 19% Amid National Housing Decline
While Australian home prices experience record declines nationwide, South Australian (SA) regional housing prices rose 19% over the past 12 months. Growth is expected to slow following a sharp drop in property inquiries after the September interest rate hike.
Major Cities Fall, Some Regional Areas Rise
According to Domain's property report, Australian home prices fell 4.7% in the September 2026 quarter. This represents the largest quarterly decline on record.
This is the first time in 15 years that median home prices have fallen across all major cities. Regional areas, however, showed a different pattern. Prices rose in regional Victoria, Northern Territory, and South Australia.
South Australian regional areas saw the largest increase. The median home price in areas outside Adelaide rose 19% over the past 12 months to $595,000. A Proptrack report from earlier this year revealed that SA regional home prices nearly doubled over the past five years.
Signs of Change in Regional Property Markets
Naracoorte real estate agent Margot Shortt described the past year as "crazy." Many people rushed to buy, expecting prices to continue rising.
However, the situation changed after the Reserve Bank of Australia (RBA) raised interest rates to their highest level in 15 years on September 28. Shortt said inquiries to the real estate agency "fell off a cliff" due to the rate hike and broader economic factors.
"Inquiries have dropped by 99%," he revealed. With almost no recent transactions, he added it is difficult to determine whether the market is actually declining.
Expert Outlook
University of Adelaide housing economist Chris Leishman explained that Sydney and Melbourne typically experience market changes first, while Adelaide "always has a fairly slow response."
He assessed that Australia is at the tail end of the longest and most pronounced housing boom in its history. Strong growth is unlikely over the next two years, and "there needs to be a correction," he projected.
However, he added that markets in Australia do not tend to crash dramatically. He expects prices to decline further over six to twelve months before rising again in the long term.
The median home price across all regional areas fell 1.1% in the last quarter.
Sources
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