Historically low interest rates have resulted in an increase in sales and purchaser confidence in Adelaide and South Australia as a whole, with more properties sold in both the city and state in 2014 compared to 2013. Prices have also increased, with the median house price in Adelaide now at $425,000, the highest median on record, while the median price for South Australia is also a new record at $390,000.

Real Estate Institute of South Australia President Greg Moulton said data from the Valuer General for the 2014 December quarter showed a 5% increase in volume of sales over the last quarter, a 3.16% increase in median price over the last quarter and a remarkable 3.91% increase in median price over the same period last year. "The change in median price over the last few quarters is fantastic and shows quite clearly the underlying strength of the property market,” Moulton said. Year on year, there was an increase of 2.63% in volume of sales across South Australia and 2.40% across metropolitan Adelaide.

Suburbs which have seen the largest growth over a 12 month period were newcomers Somerton Park, Newton and West Croydon. Other big movers included Seacliff, Henley Beach and Marden. Top selling suburbs in terms of recorded sales over the December quarter were Morphett Vale, Parafield Gardens and Aldinga Beach. According to Moulton, Morphett Vale and Parafield Gardens will continue to be hot as first home buyers and investors will always want to live and invest in affordable suburbs that offer opportunities for development, and which also provide the benefits of infrastructure and quality transport avenues.

More broadly, the quarterly statistics showed that South Australia recorded growth of 4.00% compared to the same quarter in 2013. The unit and apartment market showed a 2.83% rise in the median price from the last quarter and a significant 4.16% rise compared to the same quarter of 2013. Sales were well up from the same period of 2013.

Moulton said it was fantastic that the property market ended 2014 on such a positive note. "Record median prices for South Australia and metropolitan Adelaide clearly show that the underlying fundamentals are sound," he said. "I look forward to 2015 being a year of continued momentum and optimism in the real estate industry.”