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SA Median value hits all time high

1 Aug 16

The second quarter of 2016 has ushered in a spectacular result to mark the half year.  Never before have we witnessed higher median values in metropolitan Adelaide and across South Australia.

Following the release of the Valuer-General’s median house value data for the 2016 June quarter, REISA President, Mr Alex Ouwens said that the latest figures showed a fantastic 2.27% increase in the median value over the first quarter of 2016 and a phenomenal 5.42% increase over the same quarter last year.

In the June quarter, 4,000 houses settled across the Adelaide metropolitan area which is a result that is down on the same quarter last year but almost the same as the previous quarter.  Sales across the entire State were also consistent with the previous quarter.

“It is great news that the median value has once again shattered the record and now stands at an amazing $450,000.  Every quarter, it just keeps getting higher and higher.  This in itself is evidence of the strength of the underlying fundamentals of the South Australian real estate market and a testament to the fact that purchasers are willing to pay a premium price for a property in a transparent and competitive market” Mr Ouwens said.

“The volume of sales across South Australia and in metropolitan Adelaide are solid and there are always a variety of reasons as to why they rise and fall over certain quarters.  We always would like to see more sales every quarter – even if they are up from the previous one – but I am enormously encouraged by the fact that sales remained very stable from the traditionally strong first quarter.

“The months leading into winter are often tough and this – along with the cold temperatures, employment figures, Federal election and negative gearing campaign – could have easily influenced the sales figures for this quarter.  It is fantastic that the sales results held up throughout this”

“Confidence in South Australia’s property sector is high and this quarter’s results demonstrate the importance of tax and planning reforms, as well as significant defence investment”

“From an investor’s perspective, housing finance commitments indicate that the Adelaide market is in favour.  Investors currently make up nearly half of all mortgages which is great news for Adelaide.  We are also seeing Buyer Advocates from Melbourne and Sydney over recent months buying 4 or 5 properties per weekend at auction for clients back on the Eastern seaboard” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were Semaphore, Nailsworth and St Peters.  Other big movers included Evanston, Largs Bay and Glenelg North.

Top selling suburbs in terms of recorded sales over the June quarter were the perennial Number 1 Morphett Vale, Parafield Gardens and Mawson Lakes.

“While the list of top growth suburbs can fluctuate wildly, it is always good to see that the top selling suburbs remain pretty constant quarter after quarter.  Housing affordability, great infrastructure, lots of development activity, investment potential and location are always factors that appeal to first home owners and investors alike and will continue to ensure that these suburbs remain at the top of the sales lists” Mr Ouwens said.

More broadly, the June quarter statistics showed that South Australia recorded growth of 5.13% compared to the same quarter last year and 2.50% growth compared to the last quarter.

The unit and apartment market showed a 2.09% increase in the median value compared to the same quarter last year and a fantastic 5.12% increase when compared to the last quarter.   Sales were significantly up from the previous quarter both in metropolitan Adelaide and across the State.

“I am delighted with these figures.  We have a sensational new record median value, sales have remained stable over a traditionally tough quarter, home and unit sales are up, and confidence out there in the market place is strong.  I look forward to this trend continuing throughout the rest of the year” Mr Ouwens said.

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