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Market Update Metro: 4th Quarter 2016

7 Feb 17

The last quarter of 2016 showed a healthy increase in the volume of sales which offers a good dose of optimism for the housing market in the coming year.

Following the release of the Valuer-General’s median house value data for the 2016 December quarter, REISA President, Mr Alex Ouwens, said that the latest figures showed a stable median price of $440,000 – the same result as the previous quarter and the same quarter last year.

In the December quarter, 4, 385 houses settled across the Adelaide metropolitan area which is up from the previous quarter and only slightly down from the same quarter last year.  Sales across the entire State also showed a good increase from the previous quarter.

“Traditionally the last quarter of the year shows a pick up in the housing market, but given the short supply of housing stock throughout 2016, it is great to see that sales picked up across all sectors of metropolitan Adelaide as well as across the entire State.  It is also great news that the median price of $440, 000 rounds off 2016 in spectacular fashion”.

“In the last Market Update, I spoke about how I had spoken to many sales agents and had heard time and time again that clients were waiting until the warmer months before venturing into the market.  I am pleased that these predictions came true and that so many agents continue to have their finger on the pulse and be skilled enough to read the market accurately and consistently”

“I also iterate my concerns, as President of REISA, about the stamp duty concerns that many purchasers have about entering the South Australian property market.  Since stamp duty was first introduced, property prices have gone up 10 fold but stamp duty, due to bracket creep, has gone up 40 fold.  It’s time for the State Government to relieve property owners and would be property owners of the burden of excess taxes on residential property transactions” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were Walkerville, Gulfview Heights and Pasadena.  Other big movers included Hectorville, Myrtle Bank and Vale Park.  Top selling suburbs in terms of recorded sales over the December quarter were the perennial Number 1 Morphett Vale, Paralowie and Mawson Lakes.   Other performing suburbs included Aberfoyle Park, Hallett Cove and Aldinga Beach.

“Once again, the top selling suburbs remained stable and Morphett Vale led the pack.  Affordability is the key – State Government take note – and suburbs that are affordable and have great infrastructure, transport and development potential will always top this list.  Walkerville is the star performer in the growth list – with a massive 81.3% change in median price over the last year - but given the reasonably small volume of sales in Walkerville, this can appear deceptive.  One high selling property can dramatically change the result when sales in a suburb are low” Mr Ouwens said.

More broadly, the December quarter statistics showed that South Australia recorded the same growth compared to the same quarter last year but a welcome 1.25% increase from the previous quarter.

The unit and apartment market showed a 0.49% increase in the median price compared to the previous quarter but a slight decrease from the same period last year.  Sales were also up from the previous quarter.

“The market has definitely bounced back and is showing great signs for a good performing 2017.  The warmer months are upon us, vendors and purchasers are itching to step into the market place and the increase of stock on the market will make 2017 a good year for the real estate industry” Mr Ouwens said.

Click here to view the full Market Update.