Six-year high as sales and prices continue to increase

Feb 2000

The end of the 20th century marked a stunning year for the South Australian property market, which recorded its best year of growth in more than five years.

During the 1999-year, 25,598 houses were sold across SA, compared with 23,267 in 1998. The figures are almost as high as the strongest year of sales recorded throughout the decade - 26,064 in 1994.

While sales volume remained healthy during 1999, median house values continued to increase State-wide, jumping 7.8 per cent from $110,700 in December of 1998 to $119,300 at the end of 1999.

Real Estate Institute of SA (REISA) General Manager, Mr Enzo Raimondo, said the Department for Administrative and Information Services (DAIS) house sales statistics for the December, 1999, under-lined how healthy the SA property market is.

Mr Raimondo said that median house values as well as sales volume had been constantly rising throughout 1999.

"The figures for the December quarter of 1999 are very encouraging, particularly as we have seen growth in virtually every sector of the market and not just the established well-performing suburbs," Mr Raimondo said.

"South Australia's economy is very healthy and that is reflected in the strong rise in sales volume and prices recorded in metropolitan and rural areas."

"There is genuine demand for properties as buyers are keen to take advantage of the current attractive buying conditions."

Better-performing local Government areas in 1999 include:

• Prospect, median values rose by 12.2 per cent to $190,000,while sales volume increased by 15.3 per cent on the December, 1998, quarter.
• Marion, values rose 11.2 per cent to $135,800 and sales increased by 11.9 per cent.
• Charles Sturt, values up 10.4 per cent to $146,700 and sales up 21 per cent.
• Salisbury, values up 6.7 per cent to $88,700 and sales up 19.7 per cent.
• Old Noarlunga, values up 8.9 per cent to $92,100 and sales up 3.5 per cent.
• Campbelltown, values up 15.4 per cent to $146,800 and sales up 17.5 per cent.
• Regional growth areas (including Port Lincoln, Mount Gambier, Murray Bridge, Victor Harbor and Whyalla); values rose 7.4 per cent to $93,400 and sales volume rose 9.6 per cent.

Inner-metropolitan properties also performed well, with prices rising by 14.3 per cent to $213,200, compared with the December, 1998, quarter.

Mrs Raimondo said that REISA was confident the SA market would continue to prosper well into 2000.

"The long-term trend is positive, buying conditions are very accommodating and we are definitely seeing more buyers are coming onto the market," she said.

* The figures for the December 1999 quarter are preliminary only. Based on previous reports, they may increase by up to 10 per cent as additional sales are officially listed by DAIS.