“Confidence is well and truly back” in South Australian market
The June 2018 quarter results released by the Real Estate Institute of South Australia (REISA) reveals confidence has returned to the market.
“The June quarter has been nothing short of spectacular,” REISA President Mr Alex Ouwens told WILLIAMS MEDIA, and the figures speak for themselves.
Figures for the June 2018 quarter reveal significant growth in median prices over the last 12 months, a “fantastic increase in sales since the last quarter, and a surefire sign that confidence is well and truly back in the real estate market,” said Mr Ouwens.
The median price remained stable at the record breaking median posted last quarter, while capital growth registered an impressive 3.87 per cent increase over the last year across metropolitan Adelaide.
“It is fantastic news that this quarter matched the record breaking median posted last quarter and shows no signs of going anywhere but upward. When we hear that the eastern states have come off the boil and into cool water, Adelaide is defying the trend,” Mr Ouwens said.
“We are by far the most affordable and liveable city in Australia and these results clearly attest to that. Now is a great time for first home buyers and investors to enter the real estate market and the results clearly show that they are on board. Business sentiment is at its highest in many years too,” Mr Ouwens continued.
In the June quarter, 4,223 houses settled across the Adelaide metropolitan area, a significant increase from the previous quarter.
Mr Ouwens says he is “delighted” that sales across the entire state were also significantly up from the last quarter
“Record medians are great but when they are combined with upswings in sales, the news is even better,” Mr Ouwens said.
“It is absolutely fantastic that sales have significantly increased in the June quarter. The sales figures are solid and represent the continuing resilience of the South Australian real estate market ” Mr Ouwens continued.
Mr Ouwen said that while the results are great, he would like to see the government address the hefty foreign property tax.
“While it is time to celebrate these results, I once again iterate the need for the State Government to continue its discussions with REISA on the important issues of compulsory professional development and making South Australia the most competitive state to buy property.
“On one hand we are welcoming foreign investment with the submarines and space exploration but on the other hand we are closed for business with the hefty 11 per cent foreigners tax on new property purchases.
“What is very clear is that the resolution of these issues would only enhance the real estate experience and growth of opportunities for young people in South Australia even more,” Mr Ouwens said.
Top growth suburbs
Henley Beach South, Smithfield, and Henley Beach topped the list for the largest growth over a 12 month period.
Athelstone, Norwood, and Craigburn Farm followed closely behind.
“Never before have the top performers in sales and growth throughout this quarter exemplified the key drivers of any purchaser’s decision – location and affordability. Affordability coupled with infrastructure and investment opportunities will always deliver suburbs that do well for first home owners and investor,” Mr Ouwens said.
“Location, in particular, and proximity to the beach will always prove popular in offering lifestyle changes, recreational opportunities and the desire to downsize once the kids have all left home,” Mr Ouwens said.
The June 2018 quarter also revealed growth in the South Australian median price was 1.19 per cent up from the previous quarter, and a robust 2.41 per cent up from the same quarter last year.
The apartment and unit market decreased slightly in median price compared with the previous quarter and the same quarter last year, while sales were also slightly down.
For the June 2018 quarter, median house values stood at $265,000, a slight decrease from the previous quarter, and the same quarter last year.
But sales were significantly up by 8 per cent.
“It is fantastic to see such an increase in sales in the June quarter – almost an 8 per cent increase. These figures show the continuing resilience of the regional real estate market and I am optimistic that this trend will continue over the coming months,” Mr Ouwens said.
Suburbs which saw the largest growth include Barmera (22.5 per cent), Port Pirie (9.08 per cent), and Berri (8.6 per cent)
The top selling suburbs were Victor Harbor, Mount Gambier, and Port Lincoln.