Over the last quarter, South Australia has seen property prices reach a record high. The Real Estate Institute of South Australia (REISA) reported that the median property prices throughout the state saw a significant increase over the September quarter.
Given that the third quarter of the year is typically the slowest time of year for the property market, these price increases indicate that the market is not slowing down any time soon. The continually rising unit prices across Adelaide means buying now will be a sound investment for those entering the market.
Barry Money, CEO of REISA, stated that “Once again, vendors undoubtedly are the winners thanks to the new record median price which climbed to $560,000 this quarter across metropolitan Adelaide”.
Mr Money cited Mount Barker, Morphett Vale and Craigmore as the suburbs that have consistently recorded elevated housing demand over the last quarter. Other suburbs which performed well include Sellicks Beach, Smithfield Plains, and Broadview, where the price gains rose above the state average.
According to Mr Money, these results are “a clear demonstration that the key drivers of buyer and investor sentiment include affordability, development potential and rental return.”
Other industry research also reaffirmed the rise in house and unit prices in Adelaide. It was reported that house prices jumped 5.6% and reached a new record high of $667,888 over the September quarter. Apartments are still the cheaper option for those looking to buy in the Adelaide market, although median unit prices also rose by 5% to $357,615.
Whilst demand currently outweighs supply and price growth appears to be steady, there is indication that buyer demand is easing. Research has shown that home loan financing has begun to decline from recent peaks. So, whilst conditions are currently skewed towards sellers, as new listings continue to track highly and buyer demand eases, supply should begin to normalise according to industry research.
Compared to other major capital cities like Sydney and Melbourne, Adelaide is one of the more affordable options for those looking to purchase property in Australia. According to industry research, Sydney and Melbourne also reached record high prices for units, with the median price of Sydney units rising to $802,475, more than double that of Adelaide.
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