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South Australia’s housing market records healthy increase in sales

South Australia’s housing market has recorded a healthy increase in the volume of sales for the last quarter of 2016 which offers a dose of optimism for the market in the coming months.

Real Estate Institute of South Australia (REISA) president, Alex Ouwens, said that the latest figures showed a stable median price of $440,000 – the same result as the previous quarter and the same quarter in 2015.

In the 2016 December quarter, 4,385 houses settled across the Adelaide metropolitan area which is up from the previous quarter and only slightly down from the same quarter last year.

Sales across the entire state also showed a healthy increase from the previous quarter while the suburbs which have seen the largest growth over a 12 month period were Walkerville, Gulfview Heights and Pasadena.

“Traditionally the last quarter of the year shows a pickup in the housing market, but given the short supply of housing stock throughout 2016, it is great to see that sales picked up across all sectors of metropolitan Adelaide as well as across the entire state. It is also great news that the median price of $440,000 rounds off 2016 in spectacular fashion.”

“In the last Market Update, I spoke about how I had spoken to many sales agents and had heard time and time again that clients were waiting until the warmer months before venturing into the market. I am pleased that these predictions came true and that so many agents continue to have their finger on the pulse and be skilled enough to read the market accurately and consistently”

“I also iterate my concerns, as President of REISA, about the stamp duty concerns that many purchasers have about entering the South Australian property market. Since stamp duty was first introduced, property prices have gone up 10 fold but stamp duty, due to bracket creep, has gone up 40 fold. It’s time for the State Government to relieve property owners and would be property owners of the burden of excess taxes on residential property transactions” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were Walkerville, Gulfview Heights and Pasadena. Other big movers included Hectorville, Myrtle Bank and Vale Park. Top selling suburbs in terms of recorded sales over the December quarter were the perennial Number 1 Morphett Vale, Paralowie and Mawson Lakes. Other performing suburbs included Aberfoyle Park, Hallett Cove and Aldinga Beach.

“Once again, the top selling suburbs remained stable and Morphett Vale led the pack. Affordability is the key – state government take note – and suburbs that are affordable and have great infrastructure, transport and development potential will always top this list. Walkerville is the star performer in the growth list – with a massive 81.3 percent change in median price over the last year – but given the reasonably small volume of sales in Walkerville, this can appear deceptive.”

“I also iterate my concerns, as President of REISA, about the stamp duty concerns that many purchasers have about entering the South Australian property market. Since stamp duty was first introduced, property prices have gone up 10 fold but stamp duty, due to bracket creep, has gone up 40 fold.

He said it was time for the SA state government to relieve property owners and would be property owners of the burden of excess taxes on residential property transactions.

More broadly, Ouwens said the December quarter statistics showed that South Australia recorded the same growth compared to the same quarter last year but a welcome 1.25 percent increase from the previous quarter.

The unit and apartment market showed a 0.49 percent increase in the median price compared to the previous quarter but a slight decrease from the same period in 2015.

“The market has definitely bounced back and is showing great signs for a good performing 2017. The warmer months are upon us, vendors and purchasers are itching to step into the marketplace, and the increase of stock on the market will make 2017 a good year for the real estate industry,” Ouwens said.

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