South Australian property market a proven performer

10 July 2004

The Adelaide metropolitan property market has continued to move forward recording growth of over 17% for the year and 3.2% for the quarter, taking the metropolitan median house price to $258,000.

“This steady growth in the property market demonstrates the stability of our market,” Real Estate Institute of South Australia President, Mr Robin Turner said.

This is the fifteenth consecutive quarterly increase in the median house price in metropolitan Adelaide.  The entire South Australian market has continued to perform well with all areas of the State recording steady growth. Although sales volume is down from this time last year, this market correction was expected as the market has been gradually stabilising to sustainable levels.

The volumes of the previous years were phenomenal, but not sustainable and the sales volume in this quarter marries up with levels seen in previous years when the market has been in a steady and stable phase.

The outer suburbs continued to be the star performers this quarter with Gawler South, Gulfview Heights and Sellicks Beach recording the highest growth over the past twelve months to June 2004. They recorded growth rates of 57.6%, 46.1% and 37.5% respectively.

“Trends indicate that the suburbs that have risen in value considerably neighbour previous strong performers which is a pattern often seen in property cycles,” Mr Turner said.

Commenting on the levelling of the eastern suburbs, Mr Turner said that there was still steady activity in the area and prices had not fallen.

“The South Australian property market is healthy and a durable market for both buyers and sellers and these statistics affirm this.” Mr Turner said.