The stability of median dwelling values in South Australia despite the dip in sales volume reflects the buyers’ willingness to pay premium prices, according to the latest market report from the Real Estate Institute of South Australia (REISA).
The median price in South Australia went up by 0.5% over the June quarter, with the apartment segment posting a gain of 5.49%. However, only 3,526 homes settled across the Adelaide metropolitan area, down from the previous quarter and the same quarter last year.
Suburbs that recorded the highest price growth during the period were Glenelg East, Somerton Park, and West Beach. Blackwood, McLaren Vale, and Salisbury Heights also registered significant increases in prices.
Brett Roenfeldt, president of REISA, said the decline in sales activity could indicate the hesitance of some sellers and buyers who were still watching how the impacts of COVID-19 would play out in the economy and the housing market.
"However, the median price is also clearly showing that purchasers are still willing to pay premium prices for properties that are realistically and transparently priced," he said.
Roenfeldt said these recent results capture the full effects of COVID-19.
"The sustained high median price is a clear indicator of the underlying strength and resilience of the South Australian real estate market," he said.
Some of the top-selling suburbs in the quarter include Mount Gambier, Morphett Vale, and Andrews Farm. Roenfeldt said the location and affordability of these suburbs make it attractive for both buyers and investors.
"Affordability particularly when coupled with existing or exciting new infrastructure will always deliver suburbs that do well for first home buyers. Likewise, these suburbs will be seen as very attractive opportunities for investment," he said.
