South Australian property market remains strong

February 2004

The South Australian property market has once again proven to be a solid performer during the last quarter of 2003, registering a record state median house value of $220,000, an increase of more than 8% on the previous quarter and 25% over the past twelve months.

“This steady growth in the property market demonstrates the stability of the market in South Australia and defies speculation that house prices would fall,” said Real Estate Institute of South Australia President, Robin Turner.

“The median house price for metropolitan Adelaide is now $242,000, an increase of around 5.5% on the last quarter and 25% up on last year’s median price.”

Windsor Gardens was once again a standout performer, recording annual growth of over 46%. In the September quarter this suburb recorded annual growth of 51% and the June quarter, 31%,

The outer coastal suburbs continued to perform well above the market average with Reynella, Aldinga Beach and Christie Downs all recording growth over twelve months of above 30% whilst the north also recorded strong growth with increases of over 30% in key northern suburbs including Davoren Park, Elizabeth North, Elizabeth Downs, Parafield Gardens and Paralowie.

Mr Turner commented that the outer suburbs were definitely the strongest performers in this quarter largely due to availability in other areas.

“The areas that are recording higher than the average median price are becoming more tightly held suburbs,” he said.

“So instead, buyers are looking to suburbs just a little further away from the centre of Adelaide, especially because these homes represent good value for money.”

Rural areas have continued their growth rising by 22.7% over the past twelve months and nearly 14% for the quarter. The biggest gain was Berri recording a median house price of $130,000, up by 44% on last year’s figures whilst Victor Harbor continued its steady growth trend rising 23% over twelve months.

“South Australia offers excellent affordability for buyers and these latest statistics, demonstrate that people value the lifestyle choices that our State has to offer and this has helped to contribute to our steady property market growth.”