South Australia has had a record-breaking year for million-dollar home sales

SOUTH Australia has had a record-breaking year for million-dollar home sales and real estate experts predict house prices will continue to rise as the traditional surge of spring listings kicks off.

3A Yalpara Avenue, Rostrevor, is on the market for $2.4 million.

SOUTH Australia has had a record-breaking year for million-dollar home sales and real estate experts predict house prices will continue to rise as the traditional surge of spring listings kicks off.

According to RP Data, there were 659 house sales over $1 million in South Australia in the 11 months to May, the highest number for the past five financial years.

Eight South Australian suburbs had a median sale price of $1 million or more during the past financial year and all were in leafy city-fringe locations.

Toorak Gardens had the highest median price at $1.26 million, closely followed by Unley Park ($1.25 million) and Medindie ($1.21 million).

Rose Park, North Adelaide, Walkerville, Malvern and Tusmore rounded out the eight.

Househunters looking for a $1 million dollar home were not restricted to Adelaide’s eastern suburbs, however, as 143 SA suburbs or towns had sales of homes for $1 million or more last financial year.

RP Data senior analyst Cameron Kusher said record low interest rates had increased market confidence and driven strong sales in the top end of the market.

“We are starting to see some strength coming back into the market, and really it’s a story of low interest rates and the likelihood that they’ll remain low for some time.

“People are taking that opportunity to borrow more and upgrading to a superior home, and that’s increasing the level of demand above $1 million,” Mr Kusher said.

Mr Kusher said the eastern suburbs had traditionally dominated the $1 million median list because buyers were attracted by their quality homes, and proximity to good schools and restaurants.

Mr Kusher said, unlike other capitals, SA’s coastal suburbs offer a mix of premium and affordable housing.

“The cost of housing on the water in SA is significantly different to the cost of housing once you get a few streets back, and that’s why the median price gets dragged down a bit,” Mr Kusher said.

“That’s something that you don’t often get in other capital cities.”

Australian Property Monitors senior economist Dr Andrew Wilson said that the Adelaide market was undergoing a “revival”.

“There’ve been a few body blows to the local economy with the Olympic Dam project and not being able to take advantage of the resources boom when it was hot, and also issues in the manufacturing sector, but all things considered, those things are pushed to one side,” Dr Wilson said.

“Prices are growing again consistently, and that’s coming from middle and upper price areas. We’re predicting price growth of about 3 to 5 per cent over the financial year.

“As long as interest rates remain where they are, and the likelihood is that they will ... we’ll see price growth continue.

“The market is holding its own and the prospects for spring are better than they’ve been for more than four years so confidence is as high as it has been.”

Real Estate Institute chief executive officer Greg Troughton said forecasts of future value growth were encouraging.

“We are the most affordable mainland state, and I predict that when people compare what you get here for $1 million with what you get in Sydney or Melbourne, there will be more and more people looking for the lifestyle of South Australia,” he said.

Lucinda and Nicholas Beatty, who are selling their 13 Wooldridge Ave, Millswood home through Harris Real Estate, say that after being on the market for just two days, it has attracted strong interest. “It’s a good time to put it on the market with spring around the corner and our agent thinks today’s open is going to be big because our suburb is very tightly held,” Mrs Beatty said.

Ken and Lindsey McKim are selling their 8 Willowood Dr, Golden Grove, home through Toop&Toop Real Estate and say the property is unique for the area.

“A similar property in the eastern suburbs would probably cost $3 million — twice as much — and we’re only half an hour from the city,” Mr McKim said.