Quarterly house price figures –
HE strong growth in median house prices registered by most suburbs in Adelaide over the past 12 months reinforces the sense of optimism in the South Australian economy and its real estate market.
Confident buyers have been active in most geographic areas, with large numbers of suburbs generating double-digit growth to deliver an overall median house price increase of 14.08 per cent for the past year.
The upper end of the market has shown a substantial rebound in the past 12 months as confidence returned after some anxiousness in the March quarter of last year when the sharemarket hit its low point in the wake of this global financial crisis.
Suburbs, such as Malvern, which jumped 50.23 per cent to a median price of $1.04 million in the March quarter of 2010 compared with a year earlier, and Millswood, which increased 40.98 per cent, underline the large upward shifts in most of the affluent suburbs.
The coastal strip also produced some robust gains. Brighton had a 33.33 increase to $620,000 in median price over the 12 months and Semaphore rose by 30.37 per cent to $622,500. Glenelg generated a 26.4 per cent rise. Glenelg North jumped by 30.43 per cent. Henley Beach notched a 24.16 per cent increase for the 12 months, but interestingly its neighbour, Grange, slipped back by 8.72 per cent.
In the northeastern suburbs, Tea Tree Gully was a standout with a gain over the 12 months of 28.24 per cent to a median price of $420,000. Golden Grove increased by 16.62 per cent to $438,500 and close neighbour Greenwith climbed 1 7.01 per cent to $430,000. Golden Grove and Greenwith also managed strong increases of more than 14 per cent on a quarterly basis, when the March 2010 figures are compared with prices in the last three months of calendar 2009.
Traditional first-home-buyer suburbs, such as Morphett Vale, Para Hills and Sheidow Park, all showed a moderate growth rate in the March quarter of 2010 compared with the December 2009 quarter.
That may be a result of the steady increase in interest rates back towards more normal levels. Sheidow Park was the best performer of that group over a 12-month period with a 10.79 per cent increase.
An interesting trend has emerged where some of the western suburbs of Adelaide, where there is generally older housing stock on large blocks of land, have made solid gains. Seaton had a median house price increase of 18.27 per cent to $450,000 over the 12 months, Allenby Gardens rose 19.3 per cent to $510,000 and Croydon Park was up 17.24 per cent to $425,000. Albert Park increased by 16.91 per cent to $408,000.
The inner north suburbs continued their momentum, with Prospect surging 30.23 per cent over the 12 months to a median price of $560,000. Vale Park jumped 39.15 per cent to a median of $570,500.
Buyers are attracted to those suburbs because of the close proximity to the CBD and the relative value they represent compared with suburbs a similar distance away from the city centre in the inner south.
STRONG GROWTH: BankSA general manager Chris Ward . . . ’’a sense of optimism in the South Australian economy and its real estate market’’.