The South Australian property market has again demonstrated its remarkable resilience over the 2022 December quarter by posting a new record median price.

Following the release of the Valuer-General’s price data for the 2022 December quarter, REISA CEO, Andrea Heading said that although interest rate rises had certainly had an effect on the volume of sales, purchasers were still willing to pay premium prices for properties that were realistically and transparently priced.

“REISA expected the volume of sales to be down this quarter but we are pleased that the median price has once again smashed the record with an increase of 3.48% across South Australia since the last quarter. While sales continue to fall across South Australia and metropolitan Adelaide abetted by continuing interest rate rises and general uncertainty in local and national economic outlooks, the modest and declining scale of the decreases still clearly demonstrates that consumers are entering the market with optimism and confidence” Ms Heading said.

The results showed that South Australia posted a 3.48% median house price increase from the previous quarter and an outstanding15. 53% increase from the same quarter last year. Metropolitan Adelaide experienced a 2.13% median house price growth from the previous quarter and a robust11.57% increase from the same quarter last year.

The volume of sales across South Australia and metropolitan Adelaide demonstrated a continuing cooling off with decreases of 7.18% and 6.98% respectively from the previous quarter.

“The median prices across South Australia and metropolitan Adelaide has once again smashed records sitting at $595,000 and $670,000 respectively. While the volume of sales were once again 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. We expect the volume of sales to really bounce back once the economic situation is resolved, inflation is reined in and more consumers are able to enter into a real estate transaction with certainty”

Suburbs which have seen the largest growth over a 12 month period (with 10 or more recorded sales in the current quarter) were Henley Beach, Elizabeth North and McClaren Vale with increases of 38.74%, 36.19% and 33.48% respectively. Other big movers included Osborne, Smithfield and Port Noarlunga South.

Top selling suburbs in terms of recorded sales over the September quarter were Morphett Vale, Mount Barker and Aldinga Beach. Other top performing suburbs included Paralowie, Andrews Farm and Blakeview.

“Units and apartments across Metropolitan Adelaide also set a new record median price of $465,000 which was up 5.88% from the previous quarter and a fantastic 12.05% from the same quarter last year. What was especially pleasing was the fact that sales of units and apartments were up from the previous quarter which certainly defied the national and local trends”.

“While South Australia continues to stand firm against an uncertain economic environment, it must be remembered that an ever increasing median price certainly impedes home ownership and affordability. The priority of the South Australian Government must be to ensure an adequate housing supply to address the needs of vendors and purchasers and restore the Australian dream of owning your own home” Ms Heading said.