Strength shown in SA sales

Strength shown in SA sales

The latest market update from the Real Estate Institute of South Australia (REISA) shows strength in the southern state’s property industry, particularly in the Adelaide metro area.

The Market Update: Sales Results June Quarter 2017 Edition tracks property sales across South Australia, using changes to median prices to indicate the overall health of the mortgage market in metro and regional areas.

Overall, the South Australian property market recorded a 0.73% improvement median sale price compared to the previous quarter. Compared to the same quarter in 2016, the median sale price improved by 2.72%.

Looking more closely, metro Adelaide saw a 6.9% increase in sales activity over the past three months, with 4458 houses settling. The median house price was historically high $452,000 – up 1.12% from the same time last year, though down 1.74% from the previous quarter’s record of $460,000.

In regional South Australia, the quarter’s median house price of $264,500 was down 0.75% from the previous quarter, but up 0.76% on median 12 months previously.

Index 2Q 2016 Sales 2Q 2016 Median 1Q 2017 Sales 1Q 2017 Median 2Q 2017 Sales 2Q 2017 Median Quarter Median Change 12 Month Median Change
South Australia 5976 $405,000 5696 $413,000 5889 $416,000 0.73% 2.72%
Metro Adelaide 4470 $447,000 4169 $460,000 4458 $452,000 -1.74% 1.12%
Regional SA – Major Towns 503 $262,500 517 $266,500 466 $264,500 -0.75% 0.76%

Source: REISA

According to REISA CEO, Greg Troughton, these June figures show the underlying strength of the SA real estate market to be sustainable and sound.

“What is so fantastic about these sales figures is that they are even up from the last quarter of 2016 – traditionally the quarter which shows the highest volume of sales each year. This is great news for first home buyers who wish to enter the market or those wishing to invest in a rental property.”

It remains to be seen whether the strength of SA’s real estate will impact the state’s overall economy, which has been struggling of late with concerns including unemployment and the controversial proposed state bank tax.

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