This article is from the Australian Property Journal archive
LAND prices across Greater Adelaide are steadily growing despite rising interest rates and cost of living pressures.
According to Oliver Hume’s Quarterly Market Insights, the September quarter saw land prices across the South Australian capital increase by 8% for a total annual increase of 24%.
Greater Adelaide land prices hit an average of $230,000 over the quarter, for a median value rate of $512/sqm.
“Adelaide has been the stand-out performer in the current cycle,” said Julian Coppini, CEO of project marketing at Oliver Hume.
“Affordability has been a key driver with both local and interstate purchasers increasingly attracted to opportunities in Adelaide, due, in part, to the city’s relative affordability compared to the eastern states.”
Even with the resilience of Adelaide buyers so far, sales activity has begun to moderate, with the average size of new residential lots also continuing to round down, with the median size for the quarter at 745sqm.
While lot size wise this is trending lower that than recent trends in the city’s market, it is still sitting above averages on the eastern seaboard.
“Like all markets, we expect to see a moderation in Adelaide sales volumes in the short term as markets adjust after a record 2021 and buyers reassess their borrowing capacity,” said George Bougias, head of national research at Oliver Hume.
“However, over the medium to long term, we expect to see steady growth underpinned by a sound economy, a growing population and Adelaide’s numerous competitive advantages including affordability, employment opportunities and liveability.”
Oliver Hume itself has expanded its presence and team in South Australia over the last year in response to growth opportunities.
This has included more than $350 million worth of projects launched on behalf of clients, including projects in Gawler East and Andrews Farm.
Gawler East’s median lot price for the period was at $176,00 for a 375sqm lot, with Andrews Farm at $199,000 for a 375sqm lot and $165,000 for 300sqm.
While Buckland Park was reported at $222,700 for 375sqm, Virginia at $259,000 and Roseworthy at $230,000. With Munno Para at $174,000 for a 300sqm lot, Munno Para Downs at $152,000 and Angle Vale at $189,000 for 300sqm and $226,500 for a 375sqm lot.
South of the CBD, Mouth Barker and Port Noarlunga South’s median for a 300sqm lot was at $189,000 and $264,500 respectively. With Old Reynella and Seaford Heights’ 300sqm median at $275,000 and $285,000 respectively and 375sqm median at $345,000 and $320,000.
