The strength of South Australia’s property market has been revealed, with data indicating median house prices increased 16.78 per cent in the 12 months to December 2021, with some suburbs enjoying price growth of more than 100 per cent.
According to the latest data from the Valuer-General, median house prices across the state jumped 6.51 per cent in the December quarter of 2021 and 16.78 over the year, with Adelaide’s median price now at a record $600,000.
Real Estate Institute of South Australia Chief Executive Officer, Barry Money noted the price increases were complemented by a rise in sales volume, with further data indicating there had been a 16.2 per cent increase in the volume of properties sold during the same 12-month period.
“More vendors have entered the market during this timeframe, capitalising on the median price growth as well as the significant interest from interstate investors who see South Australia as delivering a strong return,” Mr Money said.
In metropolitan Adelaide, median prices increased 17.58 per cent over the year, including a 7.05 per cent increase in the final quarter of 2021.
The median house price for the capital is now at a record high, but on the city fringe a select group of suburbs enjoyed increases of around 100 per cent.
Suburbs which saw the largest growth over the 12-month period included St Peters with an increase of 107.55 per cent, South Brighton (98.53 per cent) and Oakden (68.8 per cent).
Other big movers included Burnside, Glynde and Linden Park.
Top-selling suburbs in terms of recorded sales over the December quarter were Morphett Vale, Mount Barker and Munno Para West.
Other top performing suburbs included Blakeview, Aldinga Beach and Parafield Gardens.
“It is also pleasing to see that sales of units and apartments are on the increase with a rise of 7.98 per cent year-on-year in terms of median price and an increase of 53 per cent in terms of the volume sold in the December 2021 quarter compared to the same period in 2020,” Mr Money said.
“The total volume of sales this quarter approached 8000, which is an extraordinary result for South Australia.
“However, this, coupled with the ever increasing median price, poses an affordability conundrum for the South Australian Government.
“While these results generate a steady flow of stamp duty and taxation revenue, they also mean that first home buyers and tenants will continue to struggle.
“There is no doubt that affordability and supply of housing will prove to be a key issue in the upcoming state election,” Mr Money said.
