Adelaide real estate continues to be among the strongest in the country, with the value of land now surpassing $200,000 for the first time.
after growing by more than 5 per cent in the June quarter.
According to real estate services group Oliver Hume, land prices jumped more than five per cent in the June quarter and were up by 8.5 per cent annually to the end of June.
The median price hit $205,000, which equates to a median value rate of $465sq m.
Oliver Hume Chief Executive Officer of Project Marketing, Julian Coppini said Adelaide’s property market was one of the best performed in the country this year.
“Together with South East Queensland, the Adelaide market is one of the healthiest in the country with relatively good affordability and a healthy supply of stock coming to market,” Mr Coppini said.
Sales volumes over May and June remained above long-term averages, despite a dip following interest rate hikes, as almost 1000 homesites were transacted in the quarter, compared to 800 in the prior quarter.
Greater Adelaide’s key greenfield all saw strong growth in the year to the end of the quarter, with the Barossa up 4.9 per cent, Gawler up 18.3 per cent, Mt Barker up 15.1 per cent and Playford climbing 10.9 per cent.
“While prices have increased in the recent cycle and are around peak levels, affordability will continue to be the dominant factor in the attractiveness of the Adelaide market, with land considerably more affordable than many other markets around the country,” Mr Coppini said.
At the same time, the median size of lots selling across the market has been dropping over the past two years, with the median lot size at the end of the quarter coming in at 450sq m, as price growth resulted in a shift in buyer budgets and preferences.
Oliver Hume Head of National Research George Bougias said interest rates had slowed down buyer activity.
“Like all markets, we’ll see a slowing of sales volumes as buyers reassess their borrowing capacity and other considerations, but over the medium and long-term, we should see steady growth underpinned by a strengthening economy and a return to steady population growth,” Mr Bougias said.
“The Adelaide economy is bouncing back strongly from COVID with unemployment falling on the back of steady jobs growth.”