'They're leading the charge': Why demand in Adelaide's prestige property market has surged

Old heritage sandstone homes on sprawling landscaped grounds, elegant mansions with pools and tennis courts, and contemporary luxurious palaces purpose-built for comfort and convenience.

Adelaide may have a small prestige market compared with other capital cities, but what it lacks in number, it more than makes up for in opulence. And after years of a flat-lining, top-end market prices are now on the way back up after a sharp increase in demand from interstate and overseas buyers.

“The prestige market in Adelaide is now really, really strong,” says Sally Cameron, sales partner at Toop & Toop Real Estate. “There are a lot of buyers coming in from Sydney and Melbourne and lots of expats.

“Our prestige market is very different to that on the eastern seaboard – last year, the most expensive property sold was $5 million.”

Adelaide’s prestige market offers a price value compared with markets in Sydney and Melbourne. Photo: iStock

While demand is high, there’s a shortage of supply, due in part to an influx of specialists to work on the government’s $50 billion Future Submarine project.

Stephanie Williams, partner at Harcourt Williams Luxury, is seeing buyers from interstate who are benefitting.

“We’ve just had a couple who sold their beachfront property in Sydney for $4 to $5 million, then came to Adelaide and bought a lovely property on the beach and a beautiful home in the eastern suburbs for the same money.”

Interstate buyers are keeping a keen eye on Adelaide’s high-end offerings. Photo: Supplied

Some of Adelaide’s more prestigious suburbs are showing strong price growth, like Glenelg at 38 per cent over the past year on Domain Group figures, Kensington Gardens at 31 per cent and Parkside at 17 per cent.

• Related: Perth takes on world’s prestige markets
• Related: Where prestige homes are in the low $1ms
• Related: Investor buys historic Adelaide water tower

Domain Group analyst Dr Nicola Powell says most of the suburbs with a median house price of more than $1 million are showing better than average rises. “They’re leading the charge in terms of price growth. With interest rates near historic lows and Adelaide avoiding the east coast price growth, people are seeing value.”

Homes in inner eastern suburbs like Norwood often prove popular. Photo: Supplied

Steve Alexander, director of Klemich Real Estate, is seeing multiple bidders for the best properties. “Demand is very strong, particularly for character homes in the inner-east,” he says.

“The ease of living in Adelaide is its top draw. You might drive 10 to 12 minutes to work, in 20 minutes get to the beach or the wineries.”

Three homes in the area

Springfield residence

$5 million-$5.5 million

Photo: Supplied

A five bedroom mansion with a private tennis court.

The property is for sale through Stephanie Williams of Harcourts Williams.

Somerton Park residence

$3.05 million-$3.355 million

Photo: Supplied

A resort-style house with soaring ceilings and a sustainable design.

Karen Dorman of Harris Real Estate has the listing.

West Beach residence

$3.8 million-$4.18 million

Photo: Supplied

A contemporary coastal home with an eight-person lift and a gym.

Judy Myers of Ouwens Casserly has the listing honours.