Adelaide's median house price rockets higher

May 2002

South Australia's real estate boom is officially alive and kicking, according to the March 2002 property statistics released by the office of the Valuer General.

The statistics confirm what Real Estate Institute of South Australia (REISA) members have been experiencing in the marketplace throughout the first few months of the year - historically low stock levels, high rates of auction clearance and strong buyer interest - all of which have combined to drive the median price to record levels.

In a quarter of highlights, two performances stand out from the pack.

Adelaide has just experienced a quarter of growth unprecedented in recent years - a quarterly increase in excess of $10,000 in the median house price paid. After breaking through the $150,000 barrier for the first time just six months ago, the Adelaide median now sits at $168,800, an increase of 6.43 per cent over the quarter and 18.79 per cent since March 2001.

And South Australia's median house price - taking in sales right across the State - has broken through the $150,000 barrier for the first time, finishing the March quarter at $152,100. The growth in the South Australian median over 12 months is a huge 18.09 per cent.

REISA President Barrie Magain welcomed the figures and said they highlight the level of underlying consumer confidence in South Australia's economy.

"I think people are generally feeling great about living in South Australia," Mr Magain said.

"South Australia still represents some of the most affordable property Australia-wide.

"The good thing is that Adelaide's market isn't prone to huge price fluctuations so while the $10,000 increase over the quarter is great for home owners, we can feel reasonably confident that there will not be any huge swing next quarter.

"This is the sixth successive upward quarterly trend."

Mr Magain said the continuing low interest rate levels were a major factor in home affordability and when viewed in conjunction with the $10,000 First Home Buyer's Grants had a significant impact on the South Australian market.

"With established properties the first home buyer's grant buys you far more in South Australia than it does in Sydney or Melbourne," Mr Magain said.

The March figures reveal that suburbs and towns that offer lifestyle opportunities, such as access to the coast or hills are those most highly sought.

The beach lifestyle and improved access to Adelaide via the Southern Expressway is driving the median price higher in southern suburbs such as Morphett Vale (22.54 per cent), and Seaford Rise (25.10 per cent).

The seaside town of Victor Harbor continues to leap ahead with a 12-month median price rise from $126,000 to $173,300, a whopping 37.54 per cent. This was on sales volumes that rose slightly over the year.

Port Lincoln has also recorded a solid year's growth with marina developments helping to boost the median price by 17.05 per cent to $148,300.

Improved road access to Adelaide continues to have a significant effect on prices in the Adelaide Hills.

Mount Barker Local Government Area (LGA) has broken through the $150,000 ceiling for the first time, finishing the quarter with a median price of $153,200, up 24.86 per cent over the year.

In the metropolitan area, Prospect was a standout LGA with the median price rising from $233,300 in the December 2001 quarter to $265,900 in March 2002. Mitcham LGA was equally solid with growth of 8.74 per cent over the quarter from $220,700 to $240,000.

One suburb that showed a decrease in the December 2001 figures, Blackwood, rebounded with a strong performance in the March 2002 quarter. Blackwood showed a 14.86 per cent jump to $212,500 on sales volumes that were up 41.18 per cent. This highlighted the effect that stock quality and levels of available stock have on the median price.