Signs of growth in Adelaide

Signs of growth in Adelaide

Posted on Tuesday, July 17 2012 at 10:24 AM

Sales volumes are edging up, showing stronger activity in the Adelaide market, according to the Real Estate Institute of South Australia (REISA).

Based on the SA
Government June data, REISA president Greg Moulton says preliminary data has
recorded nearly 3800 sales in the June quarter.

As data is finalised,
the figure is expected to climb and end up stronger than for the same quarter
in 2011.

Moulton says sales
activity is the really important driver in the property market. “So this is a
positive change, especially after two recent interest rate cuts.”

Adelaide’s median
house price also rose for the quarter, a good sign for the second half of 2012,
says Moulton.

“Over the past
quarter, the median house price in Adelaide has risen by 3.1 per cent and we
are only looking at a 1.4 per cent decrease on the same time last year, so I
think we’re starting to see the end of some really tough times in real estate.

“It will be a slow
recovery as the general economy is weak, but people are starting to think
property again, for both investment and a different lifestyle.”

Adelaide’s strongest performers
for the 12 months to June are Semaphore, Parkside and Highbury.

“In Semaphore,
looking at the sales for the quarter, it’s clear that some big properties have
changed hands which has driven the significant spike in median house price, but
equally, it shows the demand for the suburb,” says Moulton.

“The market is
patchy at the moment, so there’s a bit of volatility quarter to quarter but
with activity rising and prices starting to stabilise we’re heading in the
right direction.”

Moulton says the
amount of stock on the market is still very high, which equals longer times on
market, but the flip side for buyers is there are more choices and cheaper

“When thinking real estate,
it has to be a medium to long-term investment and history will show that you
can’t beat the stability and reliability of bricks and mortar,” he says.

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