South Australian property prices continue to rise, despite the headwinds of higher interest rates and economic uncertainty.
According to the Valuer-General’s price data for the 2023 September quarter, house prices rose 2.4 per cent in the state over the quarter and 11.11 per cent in the past 12 months.
The median house price is now $640,000.
Metropolitan house prices jumped 8.21 per cent over the past year and 1.71 per cent over the quarter, with the median price now at $712,000.
However, the volume of sales across South Australia and metropolitan Adelaide decreased 9.91 per cent and 11.28 per cent for the quarter.
Real Estate Institute of South Australia Chief Executive Officer, Andrea Heading, said that while the economic situation and the traditionally slower third quarter had impacted the volume of sales, consumer confidence and optimism was still high.
“It is clear that purchasers are still willing to enter the real estate market and to pay premium prices for properties that are realistically and transparently priced,” Ms Heading said.
“While there was a drop in the sales volume, our members advise us that interest and attendance at open inspections are still strong with the fundamentals of the South Australia’s real estate market remaining robust.”
Suburbs which experienced the largest growth in the past 12 months included Bridgewater, Somerton Park and Plympton Park with increases of 38.40 per cent, 31.38 per cent and 30.68 per cent.
Other gainers included West Lakes, Noarlunga Downs and Smithfield Plains.
Top selling suburbs in terms of recorded sales over the September quarter were Mount Barker, Morphett Vale and Parafield Gardens along with Andrews Farm, Paralowie and Aldinga Beach.
“It is not surprising that the same suburbs feature in every quarter with consistently strong sales,” Ms Heading said.
“They are suburbs that highlight the key drivers of our real estate market, which are location, affordability and potential.
“Attractive to both first-home buyers and investors, they demonstrate that development potential, strong infrastructure and proximity to amenities will always appeal.”
Units and apartments across Adelaide and metropolitan Adelaide also showed a decrease in the volume of sales, but again set a new record price reaching $455,000 and $490,000 respectively.
“It is good news that units and apartments continue to hold their own in the current economic climate,” Ms Heading said.
“South Australia’s real estate market continues to do well but is still significantly impacted by the current economic climate and lack of adequate and affordable housing supply.”