South Australia is moving at a steady pace though some indicators point to growth ahead
Despite rapid price gains across much of the eastern seaboard, the Adelaide market has made slow progress this year, with RP Data reporting capital growth of just 4.3 per cent in the year to July 2014. In the three months to July, the market began to backslide as prices dropped by 2.6 per cent.
According to a forecast by NAB, the future is likely to be similarly sluggish. The bank predicted prices would increase by just 1.8 per cent in 2015 and 2.8 per cent in 2016.
Yet some indicators suggest a turnaround might be ahead for Adelaide.
A sentiment survey by the Property Council/ANZ shows industry confidence is beginning to recover after plummeting earlier this year. Though the index hit a low of 110 in the June quarter, it rose to 114 for September. Because confidence is a leading indicator, activity is expected to begin picking up in the second half of the year, Property Council acting executive director Lino Iacomella says.
The Real Estate Institute of South Australia (REISA) reports the median price hit a historic high of $415,000 in July. A report by Residex identified the city’s fastest growing suburb as North Plympton, where houses prices climbed by 16.64 per cent over the year to June. For units, Miles End and Kent Town were identified as top performers, with values increasing by 10.47 per cent and 9.49 per cent respectively.
House sale across the city were flat from June to July, data from REISA shows. However, some suburbs saw a spike in sales volumes, including Morphett Vale, Aldinga Beach and Paralowie.
Parkside is the country’s second most popular suburb, according to an analysis by realestate.com.au examining searches per listing in each area. Belair and Norwood are also in hot demand from online browsers.
In the regions, growth for houses was subdued compared to the metropolitan area. According to onethehouse.com, house values in country South Australia climbed by 2.25 per cent over the past year. Units, on the other hand, outperformed the city, increasing by 6.94 per cent.
Residex identified the top performers in the regional areas as Naracoorte, where houses grew by 12.77 per cent over the year, and Mount Barker, where units rose by 11.41 per cent.
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