South Australia real estate figures surge ahead

Aug 2003

Following on the heels of an outstanding March quarter, the real estate property market has continued to rise, with Adelaide recording what is believed to be record-breaking quarterly and annual median house price growths.

According to industry experts analysing preliminary sales data, it also appears that the whole of State recorded record-breaking sales numbers for the last quarter.

Adelaide's median house price grew an outstanding 10.68 percent during the June quarter to reach $221,700 - up from $200,300 in March 2003.

Over the past 12 months, the Adelaide property market has recorded an outstanding growth of 30.34 percent. In June last year, the median house price in Adelaide was $170,100.

To further break down the statistics, central metropolitan Adelaide grew 6.43 percent during the past quarter and 26.82 percent over the year. A median price home in March was $261, 200. It is now $278,000 - up from $219,200 in June 2002.

Inner metropolitan Adelaide has also shown strong growth over the quarter, rising 6.99 percent, from a median house price of $334,800 in March this year to $358,200. In June 2002, the median house price was $286,000.

Also showing good growth are home units in metropolitan Adelaide, surging ahead 7.63 percent in the past quarter, from a median price of $153,400 in March this year to $165,100 in June, and a huge 26.51 percent over the past 12 months year. In June 2002, the median unit price was $130,500.

The city is not the only area to show good growth. The whole of State figures reveals the median house price has grown 7.85 percent during the past quarter, from $180,900 in March this year to $195,100. It was $154,600 in June 2002.

Preliminary data reveals an increase in sales of whole of State during the past quarter, from 7233 in the March quarter, to 7818. In the June 2002, quarter 8217 sales were recorded.

On these preliminary results, experts say there should be a further growth of 500 sales, but this will have to be confirmed at a later date.

So, while it cannot be stated with absolute certainty that this has been a record quarter and year at this early stage, this opinion can also not be discounted.

On the preliminary sales numbers of 5738 for metropolitan Adelaide for this last quarter, it is expected that the final number will exceed the volume of 6043 recorded for the same quarter last year.

The outstanding growth of the Adelaide median house price over both this quarter and the preceding 12 months confirms the confidence South Australians hold in the real estate market.

Other factors contributing to the continued strong growth could be low unemployment, more female participation in the marketplace and "baby boomers" purchasing for retirement.

There were increases in all sectors, with many increases being for suburbs adjoining those which have shown increases in previous quarters specifically the outer northern and southern sectors.

REGIONAL AREAS

Regional South Australia has also pushed ahead in the median house price stakes.

The median price for a home is now $138,800 up 3.81 percent during the June quarter and 15.96 percent during the past 12 months. The median price for a regional home in June 2002 was $133,700.

Rural towns, including in the Riverland, have been "patchy" over the past quarter, with some big increases in regional towns with strong industry and those which attract retirees, such as coastal towns.

These include Millicent (quarterly growth 4.73 percent), Port Augusta (5.23 percent), Port Lincoln (4.20 percent), Port Pirie (14.32 percent), and Victor Harbor (11.96 percent).

While some towns have reported slight decreases over the past quarter, the annual figures for these same towns have shown growth.

These include Mount Gambier (18.02 percent), Murray Bridge (8.41 percent), Whyalla (5.74 percent), Berri (20.32 percent), Naracoorte (21.45 percent), and Renmark (24.29 percent).