Adelaide market bucks national trend

Adelaide market bucks national trend

09 July 2014 by Staff Reporter 0 comments

Adelaide continues to offer an affordable option for buyers with their sights set on inner-city living, according to the Real Estate Institute of South Australia on the back of the latest RP Data research.  

The June RP Data Rismark Hedonic Home Value Index revealed capital city dwelling values were up 1.4 per cent over the course of the month, with Adelaide and Darwin the only locations to have registered a fall.

Adelaide's property prices ended the month down 0.7 per cent compared to May, and declined 0.4 per cent over the quarter.

In light of this, the median dwelling price in the South Australian capital now stands at $400,000. This is considerably lower than many other state capitals, including Sydney ($690,000), Melbourne ($560,000) and Brisbane ($455,000).

RP Data Research Director Tim Lawless believes some of the monthly fluctuations are likely to be the result of seasonal factors.

"The recent reduction in capital gains is likely a correction from the strong market conditions reported over the first quarter of the year," Mr Lawless noted.

He instead urged analysts to take a look at monthly movements, which are much more important when it comes to assessing the stability of the wider market.

"It shows that the quarterly rate of growth peaked across the Australian housing market in August last year at four per cent. Since that time the rate of capital gain has generally trended towards a more sustainable level."

Figures suggest anyone hoping to get onto the property ladder will find dwelling values at the more affordable end of the market have increased 8.8 per cent over the past 12 months.

This compares to a 10.3 per cent capital gain in the most expensive suburbs and 10.6 per cent increase in the middle range of the capital city market.

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