reliable market lifts prices 14pc
HE consistent growth generated by the housing market in Adelaide was again on display over the past 12 months, with many suburbs generating doubledigit growth.
This reinforces the general sense of optimism in the South Australian economy and its housing market, although the rate of growth is likely to be tempered over the next few months.
A combination of six successive interest rates by the Reserve Bank since October and renewed volatility in global financial markets has begun to have an impact, with the gains made in house prices over the three months to the end of June more modest at 1.23 per cent.
But the broad 13.89 per cent rise in median house prices for metropolitan Adelaide over the past year is impressive and reinforces the city’s reputation as a solid and reliable performer without the sharp fluctuations in eastern states.
A broad cross-section of suburbs have delivered median house price gains of higher than 10 per cent, including t raditional f i rsthome-buyer suburbs in the outer northern and southern suburbs and up-and-coming suburbs in the west which are rapidly gentrifying.
Alberton was a standout in the western suburbs with a 36.8 per cent jump in median house price in the June quarter from the same period in 2009, while West Hindmarsh climbed by 32.98 per cent.
Flinders Park lifted by 17.79 per cent. West Croydon was up by 17.65 per cent, Mile End made a solid gain of 16.79 per cent over the 12 months, Croydon Park increased by 14.73 per cent and Beverley rose by 13.58 per cent.
Buyers are increasingly attracted to these suburbs by the character homes, proximity to the CBD and the relatively large blocks.
Mor p h e t t v i l l e ma d e a hefty jump of 40.35 per cent over the 12 months, with its good transport links into the city and value-for-money housing stock luring buyers. The nearby suburb of Novar Gardens also made handsome gains of 30.93 per cent.
Among t he t r a di t i onal first-home-buyer suburbs, there were dozens of solid performers. They are likely to find it harder in the months to come as the full impact of the winding back of first-home-buyer incentives works its way through the market. But in the past 12 months, Aldinga Beach notched a gain in median house price of 11.3 per cent, Blakeview was up 11.83 per cent, Burton jumped an impressive 23.35 per cent, Gawler East was up 11.72 per cent and Port Noarlunga rose 22.79 per cent.
Sheidow Park made a more modest gain of 4.96 per cent, while Woodcroft i nched ahead by 3.51 per cent.
Intriguingly, in the northeastern suburbs Wynn Vale made a solid gain of 15.49 per cent, but nearby Greenwith managed only a 2.37 per cent increase and Golden Grove slipped back 1.63 per cent.
The coastal strip generated some substantial increases. Glenelg was impressive with a 50.81 per cent rise, albeit on low turnover, Seacliff was up by 28.77 per cent and Sellicks Beach rose 27.66 per cent. Grange rose 10.37 per cent but neighbouring Henley Beach, a stellar performer in recent years, slipped back 5.03 per cent.
BankSA general manager Chris Ward . . . ‘‘The consistent growth in the housing market reinforces the general sense of optimism in the South Australian economy’’. Chris Ward BankSA general manager