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Metro Market Update - 1st Quarter 2017

28 Apr 17

The median price is again smashed as the first quarter of 2017 heralds in a new record throughout metropolitan Adelaide.

Following the release of the Valuer-General’s median house price data for the 2017 March quarter, REISA President, Mr Alex Ouwens, said that the latest figures showed fantastic growth in median price to $452,000 – a 0.67% increase from the previous quarter and a sustainable 3.67% increase from the same period last year.

“It is amazing that the median price just continues to go from strength to strength and we have broken the record again. The rise is heart warming because it is sustainable. The fact that the real estate market has been able to grow through the summer months clearly shows the underlying strength of the Adelaide real estate market. Purchasers are willing to pay a premium price for property that is realistically and transparently priced. Agents and buyers continue to comment that listing levels are low and buyer interest is high. Interstate investors are as prevalent as ever due to the general feeling that the Eastern States have hit 12 o’clock in the property cycle whereas Adelaide is still trending upwards right in the 9 o/clock sweet spot” Mr Ouwens said.

In the March quarter, 4,038 houses settled across the Adelaide metropolitan area which is down from the previous quarter but slightly up from the same quarter last year. Sales across the entire State were also down from the previous quarter but up from the same quarter last year.

“There is no doubt that we would have liked to see more sales in this quarter but these figures are solid and will rarely be as high as those recorded in the last quarter of each year. Good news for first home buyers and investors who are keen to enter the market – there are several large urban renewal projects which are in the planning stage and soon to be released” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were Largs Bay, Malvern and Vale Park. Other big movers included Prospect, North Plympton and Belair.

Top selling suburbs in terms of recorded sales over the March quarter were the perennial Number 1 Morphett Vale, Paralowie and Aldinga Beach. Other performing suburbs included Hallett Cove, Mawson Lakes and Parafield Gardens.

“The leaders in sales and growth this quarter once again illustrate the two fundamentals of a purchaser’s decision – affordability and location. Affordability is key among purchasers and suburbs such as Morphett Vale and Paralowie will always be sterling performers because they are affordable, have terrific infrastructure and offer prime opportunities for development. Location is also key and that is why the suburbs close to the beach will always be winners – they offer lifestyle and recreational choices for those wishing to downsize, undertake a seachange or be closer to nature” Mr Ouwens said.

More broadly, the March quarter statistics showed that South Australia was slightly down in growth from the previous quarter but was up a welcome 1.25% from the same quarter last year.

The unit and apartment market showed a 2.24% increase in the median price compared to the previous quarter and a fantastic 4.42% increase from the same quarter last year. Sales were slightly down from the previous quarter.

“The apartment market has finally matured in Adelaide. Good quality Adelaide apartment developments are now appreciating in price, around 5% last year, with the key corridors now being highly sought after by downsizers, professionals and investors”.

“The market is moving along nicely and 2017 will end up being a great year. A record median price coupled with solid and stable figures means only one thing – a terrific start!” Mr Ouwens said.

Click here to view the full Market Update.