Despite rising “economic uncertainty”, the South Australian property market continues to be the strongest in the country.
The Real Estate Institute of South Australia 2022 September Market Update, found that property values across South Australia continued to rise last quarter, with just a modest 1.65 per cent decline in metropolitan Adelaide.
REISA Interim CEO, Cain Cooke said the small decline was not surprising given the commencement of substantial interest rate rises.
“REISA expected the median price and the volume of sales to be down this quarter but we are pleasantly surprised that they did not fall as much as some commentators were predicting,” Mr Cooke said.
“While sales dropped across South Australia and metropolitan Adelaide, and clearly show a weakening in the market, the modest scale of the decreases still clearly demonstrates that vendors and purchasers are entering into and have confidence in their real estate transactions.”
Overall, South Australia posted a 0.88 per cent median house price increase from the previous quarter and an 18.56 per cent increase from the same quarter last year.
Metropolitan Adelaide experienced a 1.65 per cent decrease in median house price growth from the previous quarter but still posted a hefty 16.79 per cent increase from the same quarter last year.
The volume of sales across South Australia and metropolitan Adelaide demonstrated a cooling off with decreases of 11.2 per cent and 9.2 per cent respectively from the previous quarter.
Mr Cooke said the median price across South Australia continues to be close to the record high that it posted last quarter.
“While the volume of sales was clearly down, this is entirely attributable to the current economic climate and the substantial interest rate rises that have been happening for a few months now,” he said.
“Despite this, the median price and sales data continue to hold strong and once again show the underlying resilience of the real estate marketplace.”
Suburbs that saw the largest growth over a 12-month period (with 10 or more recorded sales in the current quarter) were Taperoo, Vale Park and Tranmere with increases of 62.09 per cent, 56.88 per cent and 48.35 per cent respectively.
Other large movers included Sheidow Park, Burton and Huntfield Heights.
Top selling suburbs in terms of recorded sales over the September quarter were Morphett Vale, Mount Barker and Munno Para West while Parafield Gardens, Andrews Farm and Paralowie all saw strong sales numbers.
Units and apartments across Metropolitan Adelaide also performed well with a new record median price of $440,000, which was up 3.71 per cent from last quarter’s result and an impressive increase of 10 per cent compared to the same quarter last year.
Mr Cooke said while these results demonstrate the underlying strength of the real estate market, they also highlight the inevitable flow-on effects from an uncertain economic environment and ever-increasing interest rate rises.
“A median price that continues to be near its record high makes home ownership a distant dream for many South Australians,” he said.
“Supply of housing stock continues to be an issue and REISA commends the Federal Government for its bold plan in increasing housing stock across Australia.”
