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Metro Market Update: Second Quarter 2015

7 Aug 15

South Australia’s real estate market continues to break records with a new median price recorded of $428, 250 said the Real Estate Institute of South Australia (REISA).

Following the release of the Valuer General’s median house price data for the 2015 June quarter, REISA President, Mr Greg Moulton said that the latest figures showed a 0.76% increase in median price for metropolitan Adelaide over the last quarter and an impressive 2.45% over the same period last year.

“It is great news that the median house price continues its steady increase and once again, has posted a record result.  It is evidence of the strength of the underlying fundamentals of the real estate market and even more pleasing is the fact that it clearly demonstrates that purchasers are willing to pay a premium – and transparent price for a property”

“The 2014 reforms to the legislation made the entire real estate transaction more transparent than ever and this is clearly being shown out in the marketplace”

“It is also testament to the fact that vendors are being more realistic in their pricing and the good results in vendor discounting and time on market reflects this” Mr Moulton said.

In the June quarter, 3, 038 houses settled across the Adelaide metropolitan area which is down from the same period last year and the previous quarter.  Across the entire State, sales were also down from the same period last year.

“It is certainly true that we would have liked to see the settlement of more sales but given South Australia’s current employment conditions and the record cold temperatures, perhaps this result is inevitable.  However, I am encouraged by the fact that there is still a solid volume of properties turning over so that is a good thing” Mr Moulton said.

Suburbs which have seen the largest growth over a 12 month period were Largs North, Somerton Park and Richmond.  Other big movers included Warradale, Aberfoyle Park and Munno Para West.

Top selling suburbs in terms of recorded sales over the June quarter were the long reigning Number 1 Morphett Vale and newcomers Mawson Lakes and Paralowie.

“Once again, the top performers in sales and growth can be categorised as those in more affordable areas which offer opportunities for development and first home buyers and those close to the beach which offer lifestyle, seachange or retirement choices” Mr Moulton said.

More broadly, the quarterly statistics showed that the median house price across South Australia stayed at $390,000 which represented a 2.63% increase over the same period last year”

The unit and apartment market showed a slight decrease in median price compared to the same quarter last year.   Sales were also down from the same period last year.

“While it would have been good to have registered a greater increase in sales this quarter, the key fundamentals are strong.  The median price continues to break records, vendor discounting is down and the time on market is improving”

Vendors and purchasers seem to be approaching the real estate marketplace with optimism tempered by caution, but it is good that vendors are being realistic in their pricing and purchasers are willing to pay for the property that they want.  This is the perfect real estate transaction” Mr Moulton said.

Click here to view the June Quarter Market Update

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