The South Australian property market has continued to show its resilience and strength over the 2023 March quarter by posting a new record median price yet again.

Following the release of the Valuer-General’s price data for the 2023 March quarter, REISA CEO, Andrea Heading said that the current economic uncertainty coupled with rising interest rates and the lack of properties on the market has certainly had an effect on the volume of sales this quarter. The record median price however, once again, demonstrates that purchasers are still willing to enter the real estate market and to pay premium prices.

“REISA fully expected the volume of sales to be down this quarter given the lack of supply and rising interest rates but we are pleased that the median price has once again reached a new high with increases of 0.75% and 0.84% since the last quarter across metropolitan Adelaide and South Australia respectively” Ms Heading said.

The results showed that South Australia posted a 0.84% median house price increase from the previous quarter and a 9.09% increase from the same quarter last year. Metropolitan Adelaide experienced a 0.75% median house price growth from the previous quarter and a 3.85% 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 10.54% and 13.51% respectively from the previous quarter.

“We would certainly have liked to see a greater volume of sales across South Australia but this is understandable given the current level of interest rates and the lack of supply of properties on the market. We expect the volume of sales to really start coming back once the national economic outlook improves and inflation comes back down to levels that are consistent with increased affordability” Ms Heading said.

Suburbs which have seen the largest growth over a 12 month period (with 10 or more recorded sales in the current quarter) were Maslins Beach, Davoren Park and Sellicks Beach with increases of 44.95%, 31.58% and 29.02% respectively. Other big movers included Aldgate, Virginia and Elizabeth Downs.

Top selling suburbs in terms of recorded sales over the March quarter were Mount Barker, Morphett Vale and Andrews Farm. Other top performing suburbs included Paralowie, Aberfoyle Park and Hallett Cove.

“Suburbs which continue to show growth and sustained sales really highlight the key drivers of our real estate market which are location and affordability. Those suburbs which provide attractive investments in infrastructure, development potential and amenities continue to always do well”

“Units and apartments across Adelaide pleasingly showed increases in the volume of sales and median price since the last quarter while dipping slightly across metropolitan Adelaide. It is good news that units and apartments continue to hold their own in the current economic climate”

“While these results demonstrate the resilience of the South Australian real estate market, we must not become complacent in our strategies to ensure an adequate and affordable housing supply. While there is no doubt that the local and national economic outlook is playing its part, the South Australian Government must continue its work to formulate strategies that enable all Australians to realise their ownership dreams” Ms Heading said.