Metro Adelaide house prices see highest 12-month growth for a first quarter in eleven years

Adelaide house prices have gone from strength to strength latest stats show. Explore the interactive map to see your suburb’s ups and downs over the past 11 years.

South Australia’s housing market continues its show of strength, with the latest Valuer-General’s figures revealing metropolitan Adelaide has recorded its greatest 12-month value growth for a first quarter since 2010.

Metropolitan house values rose by 8.14 per cent in the 12 months to April – the greatest annual increase for a March quarter since the 14.08 per cent recorded in 2010.

Values are also up 1.51 per cent for the quarter, taking Adelaide’s median price to a record $518,000.

Of suburbs with 10 or more sales during both the previous quarter and the same quarter last year, Gawler East recorded the greatest increase, rising 43.38 per cent to a $487,500 median. St Clair is up 41.13 per cent.

While the number of sales across both the metropolitan area and the state were down over the quarter, both figures were up 20.6 per cent on 2020’s first quarter. Real Estate Institute of South Australia chief executive Barry Money said the results were “fantastic” and showed a robust market in full swing.

“These results clearly demonstrate the resilience and strength of the SA real estate market and underscore its ability to not only meet the challenges that impacted on it last year, but to surge forward and prosper,” Mr Money said.

“Not only are vendors and purchasers entering the marketplace in massive numbers, they are doing so with confidence and a willingness to pay premium prices for properties that are realistically and transparently marketed and priced.”

Metropolitan Adelaide unit values increased by 0.13 per cent over the past quarter, and are up 5.62 per cent on this time last year.

SA’s regional market also performed strongly for the quarter, with the median house value up 2.94 per cent over the past quarter and 3.7 per cent over the past 12 months to $280,000.

New research by BankSA showed 38 per cent of its consumers regarded 2021 as a good time to buy property, with 10 per cent intending to buy, 20 per cent intending to upgrade, and 15 per cent planning to remortgage their home or property in the next year.

Alex and Rachel with baby Eva in front of the Hawthorn home they recently bought at auction. Picture: Tom Huntley

BankSA state general manager business banking David Firth said consumers cited low interest rates and reconsidering their future options post-pandemic as having the greatest bearing on their decision-making. “Reflecting changing preferences post-COVID-19, as more people work flexibly and value space at home, 68 per cent of those intending to buy preferred properties with land for a garden or an outdoor area for children or pets,” Mr Firth said.

“Additionally, 66 per cent want a property in a safe suburb with good capital growth and nice streetscaping, and 65 per cent prioritised proximity to services, including public transport, medical services and supermarkets.”

Homeward Finance mortgage broker Alex Politis and his wife, Rachel, have just bought a family home at Hawthorn. Mr Politis said the couple had been actively looking for the past six months.

“It’s a booming market across the country and state, which is why it’s very pleasing to get in at the moment,” Mr Politis said.

“I feel we’re in the early part of, hopefully, some good growth, and we’re hoping over the next year or two that will continue, which is fantastic for Adelaide which usually sees slow and steady growth.

“I’ve been hearing from some agents that some buyers are seeing the market as too hot and are planning on sitting out for six to 12 months, so that might limit the demand a little bit, and I feel it might plateau out a bit and we might see more of that slow and steady growth.

“I don’t see it continuing at this high rate for a long time. I think it will steady off.

“I don’t think we’ll see it go backwards.”

Originally published as Metro Adelaide house prices see highest 12-month growth for a first quarter in eleven years