This article is from the Australian Property Journal archive
RISING interest rates and a lack of properties on the market held back home sales activity in South Australia over the March quarter, but prices across the state still reached a new record median.
The Valuer-General’s price data showed increases of 0.75% and 0.84% since the last quarter across metropolitan Adelaide and South Australia respectively.
South Australia posted a 9.09% increase from the same quarter last year, and metropolitan Adelaide a 3.85% increase.
Meanwhile, the volume of sales across South Australia and metropolitan Adelaide cooled off with decreases of 10.54% and 13.51% respectively from the previous quarter.
REISA CEO, Andrea Heading said that the current economic uncertainty coupled with rising interest rates and the lack of properties on the market has “certainly” had an effect on the volume of sales.
“The record median price however, once again, demonstrates that purchasers are still willing to enter the real estate market and to pay premium prices.
“We would certainly have liked to see a greater volume of sales across South Australia but this is understandable given the current level of interest rates and the lack of supply of properties on the market.
Heading expects the volume of sales to “really start coming back” once the national economic outlook improves and inflation comes back down to levels that are consistent with increased affordability.
Suburbs which have seen the largest growth over a 12 month period – with 10 or more recorded sales in the current quarter – were Maslins Beach, Davoren Park and Sellicks Beach with increases of 44.95%, 31.58% and 29.02% respectively.
Other big movers included Aldgate, Virginia and Elizabeth Downs.
Top selling suburbs in terms of recorded sales over the March quarter were Mount Barker, Morphett Vale and Andrews Farm. Other top-performing suburbs included Paralowie, Aberfoyle Park and Hallett Cove.
“Suburbs which continue to show growth and sustained sales really highlight the key drivers of our real estate market which are location and affordability. Those suburbs which provide attractive investments in infrastructure, development potential and amenities continue to always do well,” Heading said.
Commonwealth Bank released an upgraded forecast for house price growth in 2023, which the major lender tipping Adelaide house prices to hold steady.
