South Australian property continues to buck the trend

The South Australian property market continues to show “resilience”, extending its record-breaking run of quarterly price increases.

According to the Valuer-General’s price data for the 2022 June quarter, South Australia saw a 3.64 per cent median house price increase over the quarter.

Metropolitan Adelaide experienced a similar surge in median house price growth recording a 1.31 per cent increase from the previous quarter up 22.55 per cent compared to the same quarter last year.

Real Estate Institute of South Australia Interim CEO, Cain Cooke said the results were extraordinary given the Reserve Bank had raised interest rates and there were ongoing issues with Covid.

“The outstanding results from this quarter, both in the median price and volume of sales, clearly demonstrates the continuing confidence that vendors and purchasers have in their real estate transactions and the underlying resilience and strength of the real estate market,” Mr Cooke said.

The volume of sales across South Australia and metropolitan Adelaide reversed the slowdown in the first quarter of 2022 with increases of 5.49 per cent and 6.48 per cent respectively.

The median price across Metropolitan Adelaide has once again increased to a new record high of $661,750.

“The sales and median results show that the June quarter was still very much within a booming house market cycle with vendors and purchasers continuing to transact across the board in both affordable and premium properties,” Mr Cooke said.

Suburbs which have seen the largest growth over the past 12 months (with 10 or more recorded sales in the current quarter) were Toorak Gardens, Findon and Somerton Park with increases of 96.55 per cent, 68.86 per cent and 68.34 per cent respectively.

Other big movers included Walkerville, Old Noarlunga and Beaumont. Top selling suburbs in terms of recorded sales over the June quarter were Morphett Vale, Munno Para West and Mount Barker.

Other top-performing suburbs included Parafield Gardens, Andrews Farm and Paralowie.

Units and apartments across Metropolitan Adelaide also remained strong with a median price of $422,775 which was only 0.05 per cent below last quarter’s record result but an increase of 3.94 per cent from the same quarter last year.

Mr Cooke said that while record-setting gains had been positive for current property owners, it’s important that they don’t push affordability out of reach for South Australians.

“While these results demonstrate the strength of the real estate market, they also highlight the inevitable flow on effects of housing affordability and supply,” he said.

“A median price that just goes up and up every quarter makes home ownership a fleeting dream for many South Australians and certainly may deter purchasers who plan on buying an investment property.

“Rental supply and affordability are key priority areas of REISA and we are pleased to be engaging in dialogue with the government to find solutions to this problem.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.