Adelaide house prices buck trend

10 July 2004

Adelaide house prices have recorded a strong quarter of growth, defying the national trend of cooling property markets.

The latest official State Government figures, published today, show Adelaide recorded 3.2 per cent growth in house prices in the June quarter.

For the year, Adelaide recorded 17.27 per cent price growth, while across the state prices grew by 20.83 per cent.

While June figures have not been released interstate, some statistics show Sydney and Melbourne house prices fell 4 per cent and 7 per cent respectively in recent months. The median price of an Adelaide house rose from $250,000 to $258,000 over the year. Total Adelaide sales for the past 12 months dropped by 1251 from 5888 to 4637.

Other key findings from the Office of the Valuer-General’s June quarterly figures show:

Prices for city apartments fell 0.64 per cent in the June quarter, from $235,250 to $233,750. For the year, city apartments and units prices rose by 11.3 per cent.

Prices for suburban apartments and units rose 4 per cent in the June quarter and by 16.82 per cent for the 12 months.

Strong annual growth in the eastern and western suburbs such as Beaumont (22 per cent), Cumberland Park (22) and Lockleys (32) and Ottoway (26).

Home units in Adelaide registered a 16.5 per cent price rise for the year and a 4.78 jump in the quarter.

Regional South Australia recorded an annual 20 per cent rise and a quarterly increase of 5 per cent. Murray Bridge was the top performer, recording a 39 per cent annual rise.

Housing Industry Association chief economist Simon Tennent predicted Adelaide would continue to experience rising prices in the next two to three years.

“These figures confirm what we have been seeing for some time now and that is Adelaide bucking the national trend when it comes to house growth,” he said.

“By no means are we expecting to see prices drop off.

“Adelaide, with an affordable housing stock, is attractive compared to other cities which are suffering from congestion. There will be continued growth in house prices in Adelaide in the next two to three years. It may not continue at the same pace, but it won’t flatten out.

“The interstate markets are already starting to show the signs of flattening out.”

The outer suburbs were the star performers, with Gawler South (57.6 per cent), Gulfview Heights (46), Sellicks Beach (37.5) and Port Noarlunga (37) recording the highest price growth over the past 12 months.

Real Estate Institute of South Australia president Robin Turner said the new results were “strong and a positive outcome”.

“It is showing steady, reliable growth,” he said.

“It proves that there is still a lot of confidence in the market and I don’t think we will crash at all ... we never have. The outcome is perfect.

“I expect the growth of house prices in Adelaide to remain steady and be a reliable market.

“We may not see enormous price rises like years gone by but we will see continued steady growth.”