SA Market Update - 2018 March Quarter
The median price record has once again been beaten. The March quarter has heralded in a new all time high median price in South Australia.
The median price record has once again been beaten. The March quarter has heralded in a new all-time high median price in South Australia.
Following the release of the Valuer-General’s median house price data for the 2018 March quarter, REISA President Mr Alex Ouwens said that the latest figures showed notable growth in the median price to $470, 000. This is an 1.08% increase from the previous quarter and a sustainable 2.84% increase from the same period last year.
“It is good news that the all-time median price record continues to be beaten from quarter to quarter. Yet again has the South Australian real estate market upped the ante to post a sustainable and healthy median price. We are by far the most affordable and liveable city in Australia, and there are still great opportunities for first home buyers. It is great to see that the real estate market has flourished throughout the summer months and that purchasers are entering the market to pay premium prices for properties that are both realistically priced and offer great opportunity for investment and development.”
“We are delighted with these quarterly results especially given that in the lead up to an election we traditionally see a slow down in all things property related. On that note, we would like to congratulate the new Premier of South Australia, Mr Steven Marshall and his Liberal team for their election victory and thank Steven personally for his speed of communication with REISA. We look forward to our meeting with the new South Australian Government shortly to discuss how we can, together, make the real estate sector more professional than ever before. South Australia is one of the last States that does not have compulsory ongoing professional development. We are striving to provide the SA real estate consumer with the most professional real estate sector in the nation and we look forward to engaging with the Government to improve standards and implement a program that includes education in best agency practice and business ethics.”
“We will also continue our quest for a more equitable spread of taxation across sectors, especially relating to stamp duty which is a monster tax that blocks our first home buyers out of the market and traps people in inappropriate accommodation for their circumstances,” Mr Ouwens said.
In the March quarter, 3, 968 houses settled across the Adelaide metropolitan area which is down from the previous quarter (as it always is) and only slightly down from the same quarter last year. Sales across the entire State were down from the previous quarter and the same quarter last year.
“The first quarter always sees a downturn in sales figures from the last quarter of the preceding year. While of course, we always want sales to be growing every quarter, there is always seasonal variability in the results. Despite this, the sales figures are solid and represent the continuing underlying strength of the real estate market,” Mr Ouwens said.
Suburbs which have seen the largest growth over a 12 month period were Norwood, North Haven and Paradise. Other big movers included Tea Tree Gully, Melrose Park and Port Willunga.
Top selling suburbs, in terms of recorded sales over the March quarter were the perennial Number 1 Morphett Vale, Craigmore and Aldinga Beach. Other top performing suburbs included Hallett Cove, Mawson Lakes and Parafield Gardens.
“The top performers in sales and growth throughout this quarter illustrate the two key fundamentals of a purchaser’s decision – affordability and location. These will always be the two dominant drivers in a real estate transaction and this is clearly shown by the suburbs that are always on these lists. Affordability coupled with infrastructure and investment opportunities will always deliver suburbs that do well for first home owners and investors. Location, in particular, proximity to the beach will always prove popular in offering lifestyle changes, recreational opportunities and the desire to downsize once the kids have all left home.”
More broadly, the March quarter statistics showed that the growth in the South Australian median price was 1.19% up from the previous quarter and an amazing 3.41% up from the same quarter last year.
The unit and apartment market showed a slight decrease in the median price compared to the previous quarter but a spectacular 6.41% increase from the same quarter last year. Sales were slightly down from the previous quarter but significantly up from the same quarter last year.