The South Australian property market has predictably begun retreating from its upward trajectory over the 2022 September quarter.

Following the release of the Valuer-General’s price data for the 2022 September quarter, REISA Interim CEO, Cain Cooke said that the results were not surprising given the commencement of substantial interest rate rises.

“REISA expected the median price and the volume of sales to be down this quarter but we are pleasantly surprised that they did not fall as much as some commentators were predicting. In fact, the median price across South Australia once again continued to rise and only showed a small 1.65% decrease across metropolitan Adelaide. While sales dropped across South Australia and metropolitan Adelaide and clearly show a weakening in the market, the modest scale of the decreases still clearly demonstrates that vendors and purchasers are entering into and have confidence in their real estate transactions” Mr Cooke said.

The results showed that South Australia posted a 0.88% median house price increase from the previous quarter and a fantastic 18.56% increase from the same quarter last year. Metropolitan Adelaide experienced a 1.65% decrease in median house price growth from the previous quarter but still posted a hefty 16.79% increase from the same quarter last year.

The volume of sales across South Australia and metropolitan Adelaide demonstrated a cooling off with decreases of 11.2% and 9.2% respectively from the previous quarter.

“The median price across South Australia continues to be close to the record high that it posted last quarter. While the volume of sales was clearly down, this is entirely attributable to the current economic climate and the substantial interest rate rises that have been happening for a few months now. Despite this, the median price and sales data continue to hold strong and once again show the underlying resilience of the real estate marketplace”

Suburbs which have seen the largest growth over a 12 month period (with 10 or more recorded sales in the current quarter) were Taperoo, Vale Park and Tranmere with increases of 62.09%, 56.88% and 48.35% respectively. Other big movers included Sheidow Park, Burton and Huntfield Heights.

Top selling suburbs in terms of recorded sales over the September quarter were Morphett Vale, Mount Barker and Munno Para West. Other top performing suburbs included Parafield Gardens, Andrews Farm and Paralowie.

“Units and apartments across Metropolitan Adelaide also maintained their impressive standing with a new record median price of $440,000 which was up 3.71% from last quarter’s result and an impressive increase of 10.00% from the same quarter last year.”

“While these results demonstrate the underlying strength of the real estate market, they also highlight the inevitable flow on effects from an uncertain economic environment and ever increasing interest rate rises. A median price that continues to be near its record high makes home ownership a distant dream for many South Australians. Supply of housing stock continues to be an issue and REISA commends the Federal Government for its bold plan in increasing housing stock across Australia.” Mr Cooke said.