Medindie on the brink of becoming Adelaide’s first $3m suburb

As one Adelaide spot is about to become the city’s first $3m suburb, more than 80 other SA suburbs now have a median house price over $1m – search the full list here.

Paying more than $1m for a house has become the norm in nearly 90 suburbs across Adelaide, but there is one location where a new record could soon be broken.

According to PropTrack data, Medindie in Adelaide’s inner north is on the brink of becoming SA’s first $3m suburb.

As of May this year, the blue-chip suburb recorded a median house price of $2.925m.

Hyde Park, Fitzroy, Malvern, Springfield and Unley Park were close on its heels, with a median of at least $2m.

Around 81 suburbs also recorded medians of $1m or more, while the metropolitan house price for greater Adelaide has risen by 15.5 per cent over the past year to $670,000.

MORE NEWS

‘Ready-to-restore heirloom’ in coveted suburb hits market

Jaw-dropping renovation you have to see to believe

Live on top of the world – but it’ll cost you $3m

One Adelaide suburb is on the cusp of becoming the city’s first to record a $3m median house price. Pictures: supplied.

Daniel Brunoli at the front of his Medindie home. Picture: Naomi Jellicoe

Stephanie Williams, of Williams Real Estate, said Medindie was in a class of its own.

“It’s a suburb for the rich and famous … some of the homes that are tucked away, they are vast and imposing mansions,” she said.

“The drawing power there and the desirability to that suburb is incredible, which means homes are often very tightly held and sought after when they do come to the market.

“On top of that, there’s such a short supply of luxury properties on the market.

“We’re actually sitting on around 20 per cent less stock on the market compared to the same time last year.”

Daniel Brunoli bought his Medindie property on Robe Tce in 2009 for just over $700,000, according to property records, and never considered just how much prices might rise.

“I was 24 when I bought it so I didn’t really think too much about it,” he said.

“I was trying to get as close to the CBD as I could with the budget I had.

“It turned out better than expected.”

Mr Brunoli was preparing to bulldoze the existing house to make way for three three-storey townhouses and an office, which will be a joint project with Auriga Investment Group.

He will sell two of the townhouses through Harcourts St Peters’ Rupinder Singh and hold onto the other and the office because he wanted to stay in the area.

“I do love the area,” he said.

“There are no real thoroughfare roads running through it so all the streets are relatively quiet.”

Render of the three three-storey townhouses to be built on Mr Brunoli’s property. Picture: Harcourts St Peters.

Render of one of the townhouses to be built on Mr Brunoli’s property. Picture: Harcourts St Peters.

Render of one of the townhouses to be built on Mr Brunoli’s property. Picture: Harcourts St Peters.

Sales specialist James Robertson, of Ouwens Casserly Real Estate, said Medindie was unlikely to become the only Adelaide suburb to record major milestones this year, making it even tricker for first homebuyers to enter the market.

“It’s crazy to think that only a couple of years ago you felt like Austin Powers when you had $1m, it’s so much money, but now we’re sort of just taking it for granted when it comes to buying a home,” he said.

“But the reason why we’re now seeing these $1m plus (house prices) is because there’s not enough around to sell and that’s pushing up prices … and setting new records,” he said.

“Personally I can’t see the market slowing down anytime soon and things will likely only get trickier as the bar has been set for the next generation of home buyers.”

Real Estate Institute of South Australia chief executive Andrea Heading said demand for luxury homes was driven by cashed-up buyers, including expats, overseas arrivals and downsizers who considered Adelaide value for money.

“Those buyers aren’t so much affected by the 2.5 per cent increase from the Reserve Bank, because they are cashed up … so they are not so price sensitive and can afford to pay these prices,” she said.

“Adelaide is also still quite affordable compared to Sydney, so buyers see value for money here and what we would call expensive real estate, to them it’s not.”