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Adelaide house prices hit a new record high of $700,000

Adelaide’s property market has been arguably the best performed over the past few years, with the median house price hitting another record high in June.

Valuer-General’s data for the 2023 June quarter, showed that the median house price in metropolitan Adelaide reached $700,000 at the end of June, a 3.7 per cent increase over the quarter and 5.26 per cent over the past 12 months.

While the median house price across the rest of South Australia decreased slightly from $375,000 in March to $365,000 in June.

Across the entire state, South Australia posted a 4.17 per cent median house price increase from the previous quarter and a 9.46 per cent increase from the same quarter last year. 

Real Estate Institute of South Australia (REISA), Chief Executive Officer Andrea Heading said the improving economic outlook had certainly had an effect on the volume of sales this quarter. 

She said the record median price however, once again, demonstrated that purchasers were clearly willing to enter the real estate market and to pay premium prices for properties that are realistically and transparently priced. 

“The fundamentals of South Australia’s real estate market remain strong and healthy and definitely are once again on an upward trajectory in terms of sales and pricing,” Ms Heading said.

She said consumer confidence was also set to bounce back once inflation and interest rates cooled and stabilise at more moderate levels. 

The number of sales across the entire state also continued to rise, in a further sign of strength.

The volume of sales across South Australia increased 13.94 per cent and jumped 17.96 per cent across metropolitan Adelaide compared to the previous quarter.

“REISA is pleased that the volume of sales increased by over 10 per cent this quarter and that record median prices have been recorded across South Australia and Metropolitan Adelaide,” Ms Heading said.

A number of areas saw a huge spike in sales volumes over the past 12 months, led by Gawler East, Smithfield Plains and Norwood, with increases of 41.52 per cent, 37.01 per cent and 33 per cent respectively. 

Other big movers included Gawler South, Elizabeth Downs and Sellicks Beach. 

Top selling suburbs in terms of recorded sales over the June quarter were Mount Barker, Morphett Vale, Munno Para West, Andrews Farm, Aldinga Beach and Paralowie. 

“Suburbs which continue to demonstrate strong sales really highlight the key drivers of our real estate market which are location, affordability and potential,” Ms Heading said.

“Those suburbs which provide attractive investments in infrastructure, development potential and amenities will always perform strongly for first home buyers and investors.” 

Ms Heading said units and apartments across Adelaide showed a slight increase in the volume of sales since the last quarter while increasing substantially across metropolitan Adelaide. 

“It is great news that units and apartments continue to hold their own in the current economic climate,” she said. 

According to Ms Heading, South Australia’s real estate market continues to do well but is still significantly impacted by the lack of adequate and affordable housing supply. 

“We will continue to advocate for policies and strategies that address these issues and ensure that home ownership is a realistic dream for South Australians,” she said.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.