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SA capital city posts restrained growth

9 Dec 13

Spurred on by record-low interest rates, high buyer activity helped push median Australian house prices up 5 per cent nationwide during 2013.

Australian Property Monitors (APM) reported that this marks the best annual increase since 2009, when prices rose 12.6 per cent.

However, growth was not uniform across the capital cities.

"Individual performances, however, remained patchy and mixed both between capital city markets and market segments reflecting the underlying impact of local supply and demand factors," APM reported.

Adelaide boasts stable house price atmosphere

When compared to other capital cities, such as Sydney, Adelaide posted modest growth throughout 2013.

The median house price in the region is set to increase 2 per cent by the end of the year. However, this marks the first annual increase since 2010.

Additionally, the fact that Adelaide has the lowest median house price of all the mainland capitals is good news for home buyers, something those with a real estate career should keep in mind, as greater affordability opens up the market to a wider swath of potential buyers.

While many buyers have been priced out of markets across the country, particularly first home buyers muscled out by investors, first home buyer activity remains among the highest of all the capital cities in Adelaide.

It's also important to keep in mind that the median price is only 3.4 per cent below previous peak levels in the region, meaning that unlike other capital cities, Adelaide boasts a stable price cycle.

Furthermore, 2014 looks to have more growth in store. APM forecasts a rise in prices of between 0 and 3 per cent in the coming year.

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