House prices in Adelaide stabilise

1 November 2004

The Adelaide property market has stabilised over the past quarter with no increase or decrease in median house prices, leaving the metropolitan median at $260,000. Click here to view graph. 

“Following the steady growth in the property market over the past four years, the median house prices have consolidated and are levelling out,” Real Estate Institute of South Australia Chief Executive Officer Mr Tony Myers said.

This stabilisation was expected after such a lengthy boom period and it rejects the suggestion that the Adelaide market was going to fall away.

Mr Myers said the volume of sales had decreased again this quarter but this was expected with the market returning to a sustainable level. “The market is returning to normal levels of activity,” he said.

The suburbs of Hillcrest, Woodside and Burnside were the stand-outs this quarter by recording the highest growth over the past 12 months to September 2004. They recorded growth rates of 38.2%, 37.2% and 31.2% respectively.

The neighbouring suburbs of Evanston Park and Gawler East were also strong performers this quarter, both rising in median house price by over 28%.

Mr Myers also said that many suburbs that performed well this quarter bordered previous star suburbs. “These statistics demonstrate how some suburbs such as Hillcrest and Woodside are catching up to their neighbours and smoothing out an imbalance within regions,” Mr Myers said.

Commenting on the sales of units and apartments in the Adelaide metropolitan area, Mr Myers said that the median price had risen over 4% over the past 12 months to $190,000 with sales volume still steady.

The latest quarterly statistics have proven the South Australian property market is healthy for both buyers and sellers.