South Australia’s house sales reach five-year high

Aug 1999

South Australia’s real estate market has recorded its strongest quarter of growth in more than five years.

And if this trend continues, the number of sales in 1999 could reach their highest levels since 1995.

Department for Administrative and Information Services (DAIS) house sales statistics for the June 1999 quarter show that the total number of house sales in South Australia increased to 6066, compared with 5940 at the same time last year.

State median house prices also continued to rise-increasing 5 per cent from $110,500 in June 1998, to $116,100 in June 1999.  In the Adelaide metropolitan area, median prices rose five per cent from $119,800 to $126,000 over the same period.

The President of the Real Estate Institute of South Australia, Mr Trevor Dunsford, said the DAIS statistics-the official benchmark for the property sector-confirmed the higher level of activity in the real estate market.

"These are an exciting and important set of figures because they quantify the increased level of buyer activity that agents began noticing earlier this year," Mr Dunsford said.

"Sales volume is an accurate indicator of the health of the market as it confirms the high participation rate among buyers."

REISA analysis shows that sales volume and price increases were recorded across the State, with several Local Government areas boasting healthy activity, including:

Marion, 350 sales and a median price rise of 6.5 per cent to $126,400; Salisbury, 486 sales and a median price rise of 6.2 per cent to $86,800; Charles Sturt, 343 sales and a median price rise of 7.1 per cent to $138,300; Port Adelaide Enfield, 230 sales and a median price rise of 11.7 per cent to $100,200; Mount Barker, 109 sales and a median price rise of 10 per cent to $115,600.

Mr Dunsford said the June quarter statistics were encouraging, particularly as South Australia’s economy was showing some positive signs.

"Job security is the key issue to potential home buyers," he said.

"With the improvement in South Australia’s unemployment rate, people are more confident of their long-term futures and as such, can make a financial commitment to buying a home."

"There is a lot of confidence in the South Australian economy at the moment and that has to be sustained to ensure the real estate sector remains healthy."

"Also, our rental market remains very tight and in many cases, people are opting to buy rather than rent because it is more affordable and a better investment."