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Market Update Metro: 4th Quarter 2015

21 Jan 16

The last quarter of 2015 has ushered in a spectacular result to close the year – a new record median price.

Following the release of the Valuer-General’s median house price data for the 2015 December quarter, REISA President, Mr Alex Ouwens said that the latest figures showed a 1.16% increase in median price over the last quarter and a 2.35% increase in median price over the same period last year.

In the December quarter, 2, 999  houses settled across the Adelaide metropolitan area which is significantly down from the same periods last quarter and last year.  Across the entire State, sales were also down across the same periods.

“There is no doubt that we would like to see a lot more properties sold across South Australia and there are always a myriad of reasons as to why volumes decrease in an particular quarter.  However, results such as these – especially so when recorded in a traditionally strong quarter – certainly do strengthen our resolve to continue our fight against the punitive stamp duty regime in this State.  This ineffective and inefficient tax will always be a major cog in the wheel of home ownership.  High unemployment rates, investment uncertainty and the rollercoaster stock market over the last few months also do not inspire confidence in an investment marketplace.”

“On the other hand, we are thrilled to see a new record median price recorded for the end of 2015.  That is a fantastic result – especially as we seem to be setting a new record every quarter.  The median price is now $435, 000 which is a significant 2.35% increase from the same period last year” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were newcomers Sellicks Beach, Melrose Park and Munno Para.  Other big movers included Rostrevor, Woodville South and Wynn Vale.

Top selling suburbs in terms of recorded sales over the December quarter were the perennial Number 1 Morphett Vale, newcomer Flagstaff Hill and Top 3 stalwart Paralowie.

“It is always fascinating to see the lists of top growth and selling suburbs quarter by quarter.  The growth lists can change quite dramatically but the selling suburbs remain pretty constant over the year.  The common denominators throughout both lists though are affordability, infrastructure, location and potential for future growth.  These factors will always appeal to first home buyers and investors alike” Mr Ouwens said.

More broadly, the December quarter statistics showed that South Australia recorded growth of 2.56% compared to the same quarter last year and 1.27% growth compared to the last quarter.

The unit and apartment market showed a 2.81% fall in the median price compared to the same quarter last year but only a 0.23% drop when compared to the last quarter.   Sales were down compared to the last quarter and the same quarter last year.

“The latest figures show that property is still heading in the right direction in South Australia.  We have a sensational new record median price and the growth and sales lists clearly demonstrate that investors and first home buyers are still actively seeking out properties that can deliver a quality lifestyle in an affordable setting.”

“While it is true that the volume of sales have decreased over the past quarter, this must not be looked at in isolation and certainly not as a harbinger of doom.  The prevailing economic conditions must be taken into account and when viewed in context with the positive results recorded – clearly demonstrate that there is substantial cause for optimism” Mr Ouwens said.

Click here to download the full Market Update for the December Quarter 2015