Real estate
market – facts and figures
With real estate prices continuing to rise, and demand remaining steady,
South Australia’s property market ended a positive year in 2003. The
median house price in the Adelaide metropolitan area is now $227,500,
an increase of 24 per cent over the past 12 months.
Property prices in SA have, for three years now, risen constantly
and demonstrated the stability of the property market in Adelaide.
Demand for home units in metropolitan Adelaide has remained steady
over the past 12 months and sustained the same level of growth as
metropolitan house prices. The median price for units is now $175,000
with over 6,000 sold in the past year.
The top-performing suburb for growth over 12 months was Windsor
Gardens with a median price increase of 51 per cent. Other above-average
performing suburbs in metropolitan Adelaide were Davoren Park, Campbelltown,
Hallet Cove, Mount Barker and Salisbury North.
Coastal suburb values also continued to grow with several of the
outer coastal suburbs performing above the market average. Christies
Downs, Aldinga Beach and North Haven all experienced considerable
growth, and these suburbs adjoin regions that have previously experienced
strong demand.
Rural and regional South Australia has also demonstrated sustained
growth over 12 months with an increase in median house prices of 14
per cent to $136,000. Mount Gambier, Port Lincoln and Victor Harbor
were the strongest performing areas over the 12-month period.
A substantial amount of first home buyers entered the market with
nearly 10,000 homes sold to first homeowners over the past 12 months.
The northern suburbs continue to attract the majority of buyers, with
more than 50 per cent purchasing in this region. Close to 90 per cent
of first homebuyers chose to purchase established homes.
Where from here
Naturally, no one can say with certainty whether prices will rise
or fall in South Australia. My view is that the past points to the
future: history shows that property values, particularly in Adelaide,
never really go down. There may be blips and periods of no movement,
but generally prices rise inexorably.
Australia generally is very stable and prosperous with South Australia
out of its Cinderella status and doing very well. Million-dollar property
sales are commonplace now with some homes fetching $3 million or more.
I predict that we will see property values grow in SA by at least
the rate of inflation. The Prime Minister is talking of abolishing
or reducing stamp duty. In that eventuality, demand might well increase
and values could rise even further.
Whatever the predictions, I hold firm in the strength of bricks and
mortar, and encourage Police Association members to establish and
maintain investment portfolios. I haven’t met a person yet who has
regretted doing so.
