South Australia's property market still on the way up

May 2000

The South Australian property market recorded solid growth in the first quarter of 2000, building on the significant increases in sales volume and median house prices evident during 1999.

Figures for the March quarter of 2000, reveal that 4898 houses were sold across the Adelaide metropolitan area, compared with 4601 in the same quarter of the previous year.

Real Estate Institute of South Australia President, Mrs Rosalind Neale said the Department for Administrative and Information Services (DAIS) figures were impressive, especially considering the strong December 1999, quarter.

"The SA property industry was very active in the last half of 1999, so it is good to see that buyers are still active, despite the recent rises in interest rates," Mrs Neale said.

Median house values in SA rose by almost 10 percent from $111,200 in the March quarter of 1999 to $122,200 at the same time this year. Sales volume in the first three months of 2000 also increased from 6257 in the March 1999, quarter to 6580.

Genuine growth was reported across virtually every part of South Australia.

Some of the better-performing areas included Mitcham, where median values rose by 13.1 percent to $184,300, with sales volume increasing by 12.5 percent compared to the same period the previous year.

Old Noarlunga, values were up 11.5 percent to $94,300 with sales up by 24.3 percent, and Marion where prices rose 7.9 percent to $132,600 with a sales increase of 17.4 percent.

Regional growth areas, which include Port Lincoln, Mount Gambier, Murray Bridge, Victor Harbour and Whyalla also recorded increases, with values rising 3.3 percent to $94,700.

One of the strongest areas of improvement was inner-metropolitan Adelaide, with median prices rising almost 25 percent on the same quarter last year to $236,100.

Mrs Neale said there were plenty of good, affordable properties available, but the market was showing some signs that the strong growth of the past 18 months could he slowing, "People are becoming more aware of the GST as well as the potential impact the Sydney Olympics will have on the local and national property industry," she said.

"There is some evidence to suggest that buyers may hold off on their purchases until they see how the market is affected by a new taxation regime and the after-effects of the Games."