Adelaide metropolitan housing market continues to soar

May 2003

Adelaide's median house price began the first quarter of 2003 at the record high of $201,900, stealing the limelight from last quarter's breaking of the $190,000 barrier.

The median house price for Adelaide rose 5.43 percent during the March quarter - up from $190,000 to $201,900 - with central metropolitan Adelaide showing an increase of 5.96 percent and inner metropolitan Adelaide a growth of 7.93 percent.

These quarterly gains add to the gloss of the continuing healthy growth of Adelaide's housing market, with an increase of 19.19 percent recorded over the past year.

And again, central metropolitan Adelaide has shown great progress with a yearly rise of 22.84 percent and inner metropolitan Adelaide an annual increase of 16.91 percent.

The March figures for Adelaide, while slightly lower than the December quarter - 5.61 percent growth and an annual rise of 21.21 percent - display a strong escalation in the market.

This can be illustrated in the rise of the median home in the first quarter of 2002 from $168,000 and the December quarter median house price of $189,900, to the breaking of the $200,000 figure.

March's figures were characterised with outstanding increases in median price values in numerous suburbs, with the highest change in median house price occurring in Bellevue Heights.

The median price for a home in this suburb in March 2002 was $175,000. In March 2003, this figure jumped 53.1 percent to $268,000, with 18 sales recorded during this period.

Buyers are showing ongoing confidence in the market, particularly in the outer southern and northern areas where 30 of the stand-out suburbs can be found (stand-out suburbs refer to annual increases of more than 19 percent).

The greatest growth has not only been in the less expensive suburbs, but those with attractions such as being adjacent to a beach.

Another significant area of growth was in the northern eastern suburbs where 15 suburbs showed greater than average growth.

The higher value suburbs are also growing in value, however sales are being constrained by their higher values, often leading to larger growths in adjoining suburbs.

An example of this - last year's big mover, Henley Beach, up 12 percent to $335,000, when Grange has increased 26.8 percent to $307,500.

REGIONAL AREAS

South Australian's median house price (whole State) rose 5.13 percent to $182,300 over the quarter, slightly under the metropolitan quarterly growth of 5.43 percent.

However, regional South Australia shot ahead of both the whole State and metropolitan figures, recording a quarterly growth of 9.03 percent to a median house price of $134,000 -an annual increase of 21.6 percent.

There has been a great value increase in Whyalla (24.10 percent annual growth), as well as good increases in Victor Harbor and Alexandrina, which includes Port Elliot, Middleton, Goolwa, Hindmarsh Island and Strathalbyn.

There has also been good growth in Murray Bridge and Mount Barker - including Hahndorf, Narne and Littlehampton - as well as in areas closest to major towns nearest Adelaide and the Expressway.

The Local Government Areas of Grant, including Mount Gambier and the coastal town of Port MacDonnell, and Wattle Range, including Penola, Millicent and Beachport, have also shown healthy growth.

There have also been good increases in the industrial and coastal areas of Renmark, Paringa and Port Lincoln.