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Metro Market Update: Third Quarter 2015

3 Nov 15

As in previous years, the third quarter of 2015 shows a decrease in the volume of sales, but the Real Estate Institute of South Australia (REISA) is thrilled that the median house price has once again set a new record. 

REISA is also confident that the warmer weather, coupled with historically low interest rates and investment in the future of South Australia will see more vendors and purchasers entering the market place in the coming months.

In the September quarter, 3, 484 houses settled across the Adelaide metropolitan area which is below the amount settled in the same quarter last year.  Across the entire State, sales were also down from the same period last year and the last quarter.

“We obviously would like to see a greater number of sales but the winter months are traditionally a slow period for sales and these figures merely mirror what happens every year during this time.   It also must be said that South Australia’s nation leading, excessive stamp duty will always be a big impost on vendors transacting in this State – no matter what season we are experiencing” said REISA President, Alex Ouwens.

“However, there is great cause for optimism.  It is fantastic that the median price continues to go from strength to strength and this quarter once again breaks the record for median price.  The median price is now $430,000 which is 0.23% up from the last quarter and 4.62% from the same period last year.  In addition, investment in real estate in South Australia is increasing and auction clearance rates are also steadily improving” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were newcomers Norwood, Largs Bay and Torrens Park.  Other big movers included Blakeview, Port Noarlunga South and Broadview.

Top selling suburbs in terms of recorded sales over the September quarter were Morphett Vale, Paralowie and Aldinga Beach.

“It is amazing how consistent the top selling suburbs are quarter to quarter but it just goes to show how much affordability, potential for growth and investment in infrastructure contribute to their attractiveness to first home buyers and investors.  The beach suburbs will always be popular in relation to lifestyle and seachange opportunities and the areas that are seeing massive development will also always be highly sought after” Mr Ouwens said.

More broadly, the third quarter statistics showed that South Australia recorded growth of 5.33% compared to the same quarter last year and 1.28% growth compared to the last quarter.

The unit and apartment market showed a 3.17% rise in the median price compared to the same quarter last year.   Sales were down compared to the last quarter and the same quarter last year.

“The decrease in volume of sales should not be looked at in isolation.  The third quarter is notorious for this and this has been the case for many years now.  What I particularly like about these results is the fantastic new record set by the median price and the fact that investors and first home buyers are still flocking to suburbs that offer an affordable and quality lifestyle.  I look forward to more vendors and purchasers entering the market place as summer approaches and South Australia is seen more and more as a place of opportunity and development. We have seen more interstate interest as the Eastern seaboard settles down” Mr Ouwens said.

Click here to view the Market Update Report September 2015