South Australia saw lower sales volume over the September quarter, but The Real Estate Institute of South Australia (REISA) remains optimistic in its outlook for the state’s housing market, noting the positive results for the median house price.
Referencing the Valuer-General’s median house price data for the period, REISA President Brett Roenfeld said that the latest figures showed a median price that had remained at record levels and had hiked by 4.33% since the same quarter in 2017.
On the other hand, only 3,876 houses settled across the Adelaide metropolitan area, which evidently trended lower relative to the previous quarter and to the same quarter last year. Similarly, sales across the entire state also declined from the last quarter.
Roenfeld pointed out that lower numbers are usual for this time of the year. “It is always disappointing to see figures that show a decline in the volume of sales but it is to always be expected in the third quarter of real estate activity. The third quarter is always a slow period for sales and we always see results like this every year. The cold winter months always bring in less activity with the premium properties waiting for the warmer months to sell. I have enormous confidence that sales will pick up considerably in the months ahead,” he said.
Commenting on the upward track of the median price, Roenfeld noted that this means that that “people are still willing to pay good dollar for premium properties that are transparently and accurately priced.”
This was important to note as the September quarter statistics also showed that the growth in the South Australian median price was higher from the previous quarter and from the same quarter last year by 0.30% and 3.11%, respectively.
Going by the top performing suburbs, it was revealed that Oaklands Park, Parkside and Tea Tree Gully have recorded the largest growth over a 12-month period. Other gainers included Glen Osmond, Kilburn and Gawler South.
Top selling suburbs in terms of logged sales over the quarter were the perennial Number 1 Morphett Vale, Mawson Lakes and Paralowie.
“Affordability, investment opportunity and infrastructure will always be the key drivers for sales and growth. When affordability is right, the market remains confident and buoyant. It is no surprise then that the top sales suburbs remain very constant throughout the year” Roenfeldt added.
It was also indicated in the report that the unit and apartment market’s median price and sales fell compared to the previous quarter and the same quarter last year.
In the end, Roenfeld reiterated that South Australia is showing potential for further growth.
“I emphasise however, that the results in the third quarter can never be taken as a sign of bad times to come or that the real estate market is not moving in the right direction. The median price has remain unchanged from the last quarter and is still sitting at a record level. Sales will bounce back next quarter as they do every year and will reinforce the fact that South Australia is one of the best places in the world to live, work, invest and play,” he concluded.
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