Adelaide house price median reaches record high, defying downturn elsewhere

Adelaide house price median reaches record high, defying downturn elsewhere

The median value of Adelaide houses has soared to a record high, continuing its climb towards $500,000 and defying declining markets across Australia’s major capital cities.

The Valuer-General’s figures for the December quarter show that the city’s median house value climbed 2.13 per cent and was up 4.01 per cent on the same period in 2017 to a record high of $480,000.

The statewide median house price also climbed – up 1.9 per cent for the quarter and 2.38 per cent for the year to $430,000.

While 2018’s third quarter figures showed sluggish sales, the number of transactions for the final quarter also rose significantly – up 4.86 per cent to 5538.

Top performing suburbs

Real Estate Institute of South Australia president Brett Roenfeldt said although a year’s final quarter usually revealed an increase in metropolitan sales, he was pleased to see a sales uplift in markets across the state.

“A record median price coupled with a significant increase in sales clearly demonstrates the continuing resilience and strength of the South Australian property market,” he said.

“It cements that we are moving in a very positive direction. We’ve got so much good happening in South Australia and a steady market, and these results suggest we could be in for a really good 2019 of good solid appreciation.”

The result follows poor performance in capital cities around the country.

According to CoreLogic data, Sydney house prices have plummeted 10.9 per cent and Melbourne prices have dropped 10.6 per cent over the past 12 months.

CoreLogic head of research Tim Lawless said the weakest housing market conditions were centred around these cities.

“Both markets have seen an acceleration in the rate of decline over the past three months, with the rolling quarterly fall tracking at the fastest pace since the downturn commenced,” Mr Lawless said.

Mr Roenfeldt said Adelaide’s value rise sent a clear message to the rest of the country that SA was the place to invest.

“Even though we have this great growth, it’s important to keep in mind that we are still the most affordable capital city – so I think there is an enormous amount of upside in the South Australian market,” he said.

“A number of economists at the moment are saying if you’re investing, you should be putting your money across into the South Australian marketplace.

“We’re starting to see a bit of it and I think we’ll start to see more of it in the coming year as Sydney and Melbourne investors look to move their money into our market.”

Mr Roenfeldt said the median increase meant Adelaide was well placed to weather any market challenges resulting from a potential change in government at the next federal election, where if elected, Labor would bring in significant changes to negative gearing.

“Regardless of who gets in at the next federal election, Adelaide and South Australia as a whole is still sitting there as a very, very stable place to put your money,” Mr Roenfeldt said.

“That puts us in the box seat, based on these figures and what we are predicting for the rest of 2019.”

Metropolitan Adelaide unit values, despite dipping 3.04 per cent for the year, grew by 4.06 per cent for the quarter to $358,750.

Port Pirie was the state’s top-performing regional town, with house values up 22.86 per cent for the quarter and 11.25 per cent for the year to a $215,000 median.

Of suburbs with 10 or more sales for both 2017’s and 2018’s final quarter, Largs Bay homes experienced the highest value growth, up 43.76 per cent to a median of $737,500.

Trudy and David Brew are currently selling their 31 Gloucester St, Largs Bay home, through Kate Smith of Raine&Horne Semaphore.

They are hoping this growth will be reflected in their final sale price.

“We love Largs Bay – it’s always been very convenient for us, being close to the beach and The Port,” Mrs Brew said.

“We bought here 30 years ago and there’s been quite a bit of change here in recent years and quite a lot of development occurred around us.”

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