Property prices have continued to grow across the country and it seems the Adelaide market is one of the most sustainable at the moment.
March quarter data from Australian Property Monitors (APM) shows house prices increased 0.2 per cent over the three-month period, with Sydney and Melbourne leading the charge.
As there is much discussion over the potential of a property bubble forming, more sustainable growth in property prices – such as that seen in Adelaide – is likely to prove attractive to buyers.
APM figures show Adelaide’s house prices increased 1.3 per cent over the March quarter, contributing to an overall rise of 4.1 per cent over the year. Unit prices have risen 1 per cent over the past 12 months.
Even in light of these recent increases, Adelaide still offers the lowest median house price of all the mainland capitals at $450,444.
APM Senior Economist Andrew Wilson explained how the South Australian capital is currently undergoing a “modest housing market revival”, which may prove attractive to anyone seeking real estate advice.
Looking to the future, the group believes house price growth will continue throughout the remainder of 2014, albeit at a slower rate than that experienced last year.
“The effect of record-low interest rates on housing markets is now dissipating with the December quarter 2013 likely to be the high-water mark in the cycle for growth rates,” Dr Wilson noted.
This follows the release of recent data showing confidence is on the rise across the South Australian property market, with a 3 per cent growth in property prices forecast over the year to March 2015.
The NAB Residential Property Index for the March quarter indicated that buyers are particularly keen on established real estate at the moment, with the exception of middle and outer-ring apartments.
Source: REISA, 1st May 2014