SA Market Update - 3rd Quarter 2018
The third quarter – as happens every year – shows a decrease in the volume of sales but the Real Estate Institute of South Australia (REISA) is optimistic for the housing market in the months ahead.
Following the release of the Valuer-General’s median house price data for the 2018 September quarter, REISA President Mr Brett Roenfeldt, said that the latest figures revealed a median price that had remained at record levels this quarter and demonstrated a fantastic growth of 4.33% since the same quarter last year.
In the September quarter, 3, 876 houses settled across the Adelaide metropolitan area which is down from the previous quarter and only slightly down from the same quarter last year. Sales across the entire State were also down from the last quarter.
“It is always disappointing to see figures that show a decline in the volume of sales but it is to always be expected in the third quarter of real estate activity. The third quarter is always a slow period for sales and we always see results like this every year. The cold winter months always bring in less activity with the premium properties waiting for the warmer months to sell. I have enormous confidence that sales will pick up considerably in the months ahead”.
“What is fantastic news is that the median has remained at its record level since the last quarter. It shows that people are still willing to pay good dollar for premium properties that are transparently and accurately priced”.
“As the new REISA President, I am also looking forward to REIA continuing its dialogue with the State Government on the need to abolish the monster stamp duty tax, the desirability of bringing in compulsory professional development and a review of the real restate legislation in South Australia” Mr Roenfeldt said.
Suburbs which have seen the largest growth over a 12 month period were Oaklands Park, Parkside and Tea Tree Gully. Other big movers included Glen Osmond, Kilburn and Gawler South.
Top selling suburbs in terms of recorded sales over the September quarter were the perennial Number 1 Morphett Vale, Mawson Lakes and Paralowie.
“Affordability, investment opportunity and infrastructure will always be the key drivers for sales and growth. When affordability is right, the market remains confident and buoyant. It is no surprise then that the top sales suburbs remain very constant throughout the year” Mr Roenfeldt said.
More broadly, the September quarter statistics showed that the growth in the South Australian median price was 0.30% up from the previous quarter and a robust and sustainable 3.11% up from the same quarter last year.
The unit and apartment market showed a decrease in the median price compared to the previous quarter and the same quarter last year. Sales were also down from the previous quarter and the same quarter last year.
“It is always tricky to comment on the third quarter every year as inevitably we see a decline in the volume of sales. I emphasise however, that the results in the third quarter can never be taken as a sign of bad times to come or that the real estate market is not moving in the right direction. The median price has remain unchanged from the last quarter and is still sitting at a record level. Sales will bounce back next quarter as they do every year and will reinforce the fact that South Australia is one of the best places in the world to live, work, invest and play” Mr Roenfeldt said.