The surge in land prices is more proof that Adelaide is one of the strongest markets right now for properties.
According to Oliver Hume, land prices in Greater Adelaide increased 8.5% over the year to June, surpassing the $200,000 by $5,000 for the first time.
Meanwhile, the median size of lots selling across the market has shrunk over the last two years to 450 square metres. This makes the median value rate of land to be at $465 per sqm.
Some of the Greater Adelaide markets that posted significant gains in land prices are Barossa (4.9%), Gawler (18.3%), Mt Barker (15.1%), and Playford (10.9%).
Oliver Hume CEO of project marketing Julian Coppini said despite the dip in sales volume in May and June due to the initial rate hikes by the Reserve Bank of Australia, overall turnover remained above long-term average — around 1,000 home sites were transacted over the quarter.
“Like all markets, we’ll see a slowing of sales volumes as buyers reassess their borrowing capacity and other considerations, but over the medium and long term, we should see steady growth underpinned by a strengthening economy and a return to steady population growth,” he said.
“Together with South East Queensland, the Adelaide market is one of the healthiest in the country with relatively good affordability and a healthy supply of stock coming to market.”
Oliver Hume head of national research George Bougias said the strong turnout in the land market shows how strong Adelaide is recovering form the impacts of the COVID-19 pandemic.
“Like all markets, we’ll see a slowing of sales volumes as buyers reassess their borrowing capacity and other considerations, but over the medium and long term, we should see steady growth underpinned by a strengthening economy and a return to steady population growth,” he said.
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Photo by Tourism Australia on Canva.
