There has been little movement in South Australia’s property market in the past 12 months, new data shows, although recent cuts to mortgage interest rates have sparked some activity, said the Real Estate Institute of South Australia (REISA).
REISA president Greg Moulton said that there were no surprises in the September quarter property settlements, with the quarter’s total volume sales being similar to the same time last year.
“Properties have been moving, but at a slower rate than people were used to several years ago, so there is no doubt that property market is experiencing some tough times, like other sectors across the state,” he said.
“However, the interest rate cuts in recent months have really started to stimulate buyer activity and REISA members are commenting that more negotiations and contracts are being written in recent weeks, so we are optimistic of a stronger spring season.”
The official government data for the September 2012 quarter revealed that the median price in metropolitan Adelaide is $385,000 which is 0.9 per cent lower than the same time last year. Across the state, the SA median is $360,000 which is the same as the September quarter for 2011.
Top performing suburbs for the quarter included Somerton Park, Hope Valley and Salisbury with growth over the 12 month period of 18.4 per cent, 17.6 per cent and 13.55 per cent respectively.
Examining wider trends, the inner city suburbs performed well over the past quarter with sales volume up on the same time last year and a small increase in the median house price (up 0.36 per cent to $607,200).
Mr Moulton said that the latest sales are not revealing any strong patterns of growth, and more so, it appears that prospective purchasers are considering each property on the market on its individual merits.
“In tougher market conditions, having the property priced for sale in the current market is crucial and this is where the relationship between vendor and agent is critical,” he said.
“Moving into spring, I think there is a sense that the market will shift and a further rate cut will definitely boost confidence in the housing market.”
Smart Property Investment recently reported that the four most sought after suburbs for property in the country are in Adelaide, based on data from Realestate.com.au. The listing website complied the ten most sought after suburbs, with prospective buyer searches spiking in certain areas.
The inner-city suburb of Parkside in Adelaide topped the list, with a ratio of 119 buyers per house. It was followed by Norwood, Walkerville and Hazelwood Park, respectively.
Moreover, the state government's decision to introduce a special grant to purchase and build new properties - announced yesterday - was applaued by the REISA as another useful mechanism that may stimulate demand for property.
“The grants will help people get into a new property sooner and it will also help create additional housing stock that is needed with projected population growth in the future,” REISA chief executive officer, Greg Troughton, said.
“Although REISA is disappointed that the first homeowner grant is being reduced for people purchasing existing properties, the intent to stimulate the housing market and construction is respected.”