South Australia's real estate record breaking quarter

Nov 2003

Following a very positive June quarter, South Australian real estate has continued to defy market speculation of a property downturn to post a record-breaking median house price growth of over $200,000.

This is the twelfth consecutive quarterly increase in the median house price, made even more spectacular given the September quarter is a traditionally slower quarter due to the impact of winter months on sales activity.

The latest statistics show that South Australia’s median house price grew to $202,500 from $195,000 in the previous quarter.  Click here to view graph.  Real Estate Institute of South Australia President, Mr Robin Turner stated, "The substantial growth of the South Australian median house price over both this quarter and the preceding 12 months further confirms the confidence South Australians hold in the real estate market".

Over the past 12 months, there has been solid growth in South Australian house sales resulting in an overall increase of 22.73%. To further break down the statistics, inner metropolitan Adelaide has shown a steady strong growth over the quarter, rising 2.92 percent, from a median house price of $359,500 in June this year to $370,000 in the latest quarter.

Meanwhile, central metropolitan Adelaide grew 2.73 percent during the past quarter and 19.70 percent over the year. A median price home in June 2003 was $275,000. It is now $282,500.

One stand-out performer in the 12 months to September 2003 was Windsor Gardens with a median change of 51.47% going from $136,000 in the third quarter of 2002 to $206,000 in the third quarter of 2003.

Generally, other statistics showed coastal property continuing to experience strong buyer demand, with many increases being for suburbs adjoining those which have shown increases in previous quarters – specifically the outer northern and southern sectors such as Davoren Park, Mount Barker, Hallett Cove, Reynella, Salisbury North, Christie Downs.

“Other factors contributing to the continued strong growth could be the low unemployment in South Australia, low interest rates and continued stimulus through the First Home Owner’s Grant (FHOG) making South Australia the “affordable homeowner state” said Mr Turner.