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Can you believe it, the real estate market in South Australia is booming in Nov 2011?
November 21, 2011 by Editor · Leave a Comment
Here it is, a story that offers a glimmer of hope for the Australian real estate market. Some suburbs in Adelaide have jumped in median price by up to 37.5% over the last 12 months. Other suburbs like Mylor have increased in median sale price by 159% over the last 5 years. Incredible. Brighton has increased in median sale price by 98% over the last 5 years. Yes doubled in property value over the last 5 years. According to a recent property report, median prices are booming in seven areas of South Australia (SA).
Yet at the same time sellers are dropping house prices on average by almost 16 per cent Toorak Gardens, almost 15 per cent in Fullarton and 14.5 per cent in Hyde Park.
This is a strange mysterious market and the median price suburb report is sourced from a reputable sales data provider.
See the News.com.au story below….
Hot spots heat up a flat market
The real estate market is booming with house prices soaring in some suburbs at least according to a snapshot of the state’s property market.
And those suburbs bucking the recent trend of flat prices can be found in pockets all across South Australia, a report by RP Data has revealed.
While the median house price in Adelaide has plateaued at $396,000 up just 1.5 per cent in the 12 months to August prices surged 37.5 per cent in the same period in Mitcham in the inner-south, jumped 24 per cent at Tennyson in the west, rose 27.4 per cent in Evanston in the outer north and increased 16.9 per cent out east at Royston Park.
Full list – Click here to track your suburb (this report has no author, no contact details, no disclaimer, no description of the structure of the report and no description of the methodology used. Check out our comments below and find the original news.com.au story click here)
The geographical diversity of the top suburbs for price increases has surprised Real Estate Institute of SA president Greg Moulton. “For example, you had Vista, Gulfview Heights and Exeter among the more typical well-performing suburbs of Toorak Gardens and Tennyson,” he said.
“It is also fascinating that the traditional suburbs around Port Adelaide were not affected by the bad publicity surrounding the (falling prices in the) Newport Quays development.”
Mr Moulton said there were “always” pockets of real estate that did well regardless of the overall state of the property market.
“It’s a case of supply and demand and when you get strong demand for an area the prices go up,” he said.
“Infrastructure projects such as the Northern Expressway, a new shopping centre or improved rail links can often affect demand for a suburb.”
REISA’s regional expert Leo Redden said some sections of the Upper North were benefiting from plans to expand the Olympic Dam mine, while on the West Coast, good agricultural yields had boosted confidence among buyers.
“With the ageing population and drift of retirees to the seaside, those more affordable areas along the coast are also proving popular,” Mr Redden said.
The figures also revealed which suburbs had the quickest rate of sales as well as the slowest.
Homes in Hope Valley, Gilberton and Plympton sold in 16 days on average after being put on the market, while at the top end, the average for St Morris was 136 days, followed by 117 days for Greenhill and 108 at Evanston.
RP Data figures also show where the biggest discounts are being offered in the market, with vendors dropping house prices on average by almost 16 per cent Toorak Gardens, almost 15 per cent in Fullarton and 14.5 per cent in Hyde Park.
Real estate agent Anthony Toop said the typical vendor discount was about 5 per cent.
“But in the current market, vendors are offering discounts around 10 per cent to secure a sale,” Mr Toop said.
“Those suburbs with the highest rate of discount were also the ones which experienced big price rises during the boom times and are now suffering a greater price correction.”
Mr Toop expects the real estate market to remain subdued over the next couple of years, with the strength of the local economy being offset by problems with the global economy.
“This will lead to a dead-flat market with stable prices,” he said.
I wouldn’t sell my house for million
Mijo Barisic wouldn’t sell his Exeter home – even for $1 million. That’s because the former Holden welder loves his large stone cottage and its location on Harris St.
That’s why he isn’t surprised house prices have surged in the suburb by 20 per cent in the 12 months to August.
According to RP Data, 18 homes in Exeter have been sold for a median of $460,000 in that period – an increase of $92,000 over the previous period.
“It’s a great place; we’re close to the beach, Port Adelaide and West Lakes,” said Mr Barisic who, with wife Joanna, paid $9000 for the 10-room house in 1970 and raised their two sons and two daughters there.
“I’m not surprised there are so many buyers but I wouldn’t sell for a million because I love this house and the area. The grandchildren love coming here near the beach and cinema,” the pensioner, 69, said.
Mr Moulton said Exeter was benefiting from the “adjacent” factor.
“Buyers who are attracted to popular suburbs like Semaphore, but who can’t afford to buy there, are looking to adjacent suburbs and that’s driving up prices,” he said.
Source: News.com.au and RP Data
AREAP comments:
- Where is the mysterious RP Data report?
- Where are the sales data in the RP Data report?
- This report Full list – Click here to track your suburb has no author, no contact details, no disclaimer, no description of the structure of the report and no description of the methodology used. Aaagh it would be fair to say this report has no credibility.
- Yet these stories are published and the public are expected to accept the news story and data as factual and accurate.
- What ever happened to ASIC targetting false, misleading and deceptive property research and property reports?
- See ASIC targets research houses, but do they target providers of property research reports?
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