Quar­terly house price fig­ures –

The Advertiser - Real Estate - - Front Page -

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’’.

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