Adelaide house values surge - biggest in 10 years

May 2001

South Australian home owners are experiencing across the board increases in house prices, according to the latest quarterly property market figures.

Houses in a number of outer northern and southern suburbs have registered a median price of more than $100,000 for the first time, highlighting the demand for higher quality new developments and affordable living.

While median house prices across the State increased by 7.5 per cent to $130,200 between March 2000 and March 2001, the number of properties sold dropped from 7,127 in March 2000 to 6,559 in March 2001.

However a noticeable new trend was the explosion in prices in the suburbs of Salisbury East, Ingle Farm, Greenwith and Paralowie in the north and Morphett Vale and Aberfoyle Park in the south.

REISA president Mr Barrie Magain said it was the first time in the State's history that these suburbs had recorded a median house price of more than $100,000, indicating a strong demand for housing throughout the entire metropolitan area.

This time last year, Ingle Farm had a median price of $91,000. A rise of 15.38 per cent has put an average home at $105,000.   The median price in Para Hills rose 21.3 per cent from $92,500 to $112,200; Paralowie jumped 12.7 per cent from $89,700 to $101,100 and Salisbury East rose 10.53 per cent from $95,000 to $105,000.

"It's a price increase for the people. It is a ripple effect - like someone dropping a stone in a pond.  The prices started high in the city, and now it has worked its way to the outer suburbs," Mr Magain said.

"We are seeing people who in the past may have resisted going to the north or south now considering options out of the inner metropolitan area.  Affordability is a big factor and they can get a very good house for $100,000, not far from the city.

"In many cases, the older established suburbs have already experienced their growth, so now it is starting to spread into the north and south.  That's good news all around."

Mr Magain said the Department for Administrative and Information Services (DAIS) house sales statistics for the first quarter confirmed the $7000 First Home Owners Grant had created higher demand, as well as the extra activity created by the $14,000 grant incentive.

"We've seen very good increases in value, although with slightly lower volumes, and it is pleasing to see any negative affects of the GST have been reversed," Mr Magain said.

"The value surge in SA housing is a genuine across the board lift, right throughout the city.  These figures are strong evidence that the upward trend will continue."

Some of the better performing suburbs in the first quarter of 2001 include:

• Aberfoyle Park; the median value rose by 14.33 percent to $146,000 on the same time last year
• Wynn Vale; the median value rose by 19.15 percent to $171,700 on the same time last year
• Greenwith; the median value rose by 18.07 percent to $177,100 on the same time last year
• Glengowrie; the median value rose by 16.83 to $208,300 on the same time last year.

Regional South Australia also performed well in the first quarter of 2001 with an 8.4 per cent increase in median house prices to $98,100.

There was overall growth in country areas, particularly in median house values in the first quarter at Mount Gambier (up 12.99 per cent to $119,200) and Whyalla (up 7.68 per cent to $92,500).

Over the past 12 months, the regional median house price has also risen by 4.92 per cent, while the volume of houses sold dropped from 632 to 597.

Mr Magain said REISA was confident the SA property market would continue to grow, despite the low volumes of properties available.

"It is a very tight market, and in many cases even though the volume of sales was less than last year, the high demand pushed prices high and gave the market a great start to the year," he said.