SA property market retains ‘resilience’ despite total sales hit
Despite seeing a dip in sales volumes over the June quarter, the Real Estate Institute of South Australia (REISA) has backed the South Australian property market as the one for investors to watch.
Research released by the valuer-general has provided insight into median house price data over the three months to June.
The results show that while the volume of sales has dipped slightly from the last quarter, the median price remained at “historically high” levels.
“It is sensational news that the median price in this quarter is only just down from the record high set in the last quarter of 2019. This quarter captures the full effects of COVID-19 and so the sustained high median price is a clear indicator of the underlying strength and resilience of the South Australian real estate market,” REISA president Brett Roenfeldt said.
“While the volume of sales is down from the previous quarter, this reflects the lack of stock on the market currently and is an indication of the hesitance of the market to commit to real estate transaction in these uncertain times. However, the median price is also clearly showing that purchasers are still willing to pay premium prices for properties that are realistically and transparently priced.”
The research also found the June quarter saw 3,526 houses settle across the Adelaide metropolitan area. This is down from the previous quarter and corresponding period last year.
Key suburbs - Growth
The research identified six suburbs that have seen the largest growth over a 12-month period.
These were listed as:
1. Glenelg East
2. Somerton Park
3. West Beach
4. Blackwood
5. McLaren Vale
6. Salisbury Heights
Key suburbs - Price
Meanwhile, top selling suburbs, in terms of recorded sales over the June quarter were listed as:
1. Mount Gambier
2. Morphett Vale
3. Andrews Farm
“Location and affordability will always be the key drivers of a purchaser’s decision to either buy or invest in property,” Mr Roenfeldt said.
“Affordability particularly when coupled with existing or exciting new infrastructure will always deliver suburbs that do well for first home buyers. Likewise, these suburbs will be seen as very attractive opportunities for investment.”
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