Growth in South Australia's property market continues

Nov 1999

South Australia's property market is continuing its strong year, with median house prices and sales volume again rising during the past three months.

Following the local market's strongest quarter of growth in five years during the June quarter, State Government figures to the end of September underline the positive trend evident since the start of 1999.

Department for Administrative and Information Services (DAIS) house sales statistics for the September 1999 quarter show that the total number of house sales in South Australia increased to 5699, compared with 5432 at the same lime last year.

State median house prices also continued to rise - increasing 1 0.1 per cent from $105,700 in September 1998, to $116,400 in September 1999. In the Adelaide metropolitan area, median prices rose almost eight per cent from $116,400 to $125,700 during the same period.

General Manager of the Real Estate Institute of South Australia, Mr Enzo Raimondo, said the DAIS statistics - the official benchmark for the property sector - confirmed the strength of the SA market.

"Growth in the June quarter was very impressive and this has been complemented by an active September quarter," Mr Raimondo said. "Historically, the September quarter is slower than other quarters, due to winter weather and fewer properties listed for sale.

"To see prices and sales volume increase during what is traditionally the industry's slowest period is the sign of a healthy and active market.

"Importantly, we have seen improvements across the State."

REISA analysis shows that sales volume and price increases were recorded across the State, with several local Government areas boasting healthy activity.

Mr Raimondo said that metropolitan Adelaide continues to be a strong performer, offering high levels of capital growth to homeowners.

He said that while the city's coastal strip, including the cities of Holdfast Bay and Charles Sturt, were leading the market, prices and sales in inner metropolitan Adelaide were very healthy.

"Volume has risen again in the September quarter and median prices have jumped by 15.5 per cent to $214,900," Mr Raimondo said.

"As the trend towards inner-city living continues, buyers are looking for good properties close to the City Centre and they are prepared to pay for the right house."