Adelaide: House Prices Perform Well

Metropolitan house prices have continued to rise in the March quarter but the future is looking brighter for first-time buyers as the growth shows signs of easing. The median house price for metropolitan Adelaide is now $362,500 according to official March quarter data, which is a quarterly rise of 2.11 percent and a 19.4 percent jump from 12 months ago.

REISA President Robin Turner said the slower rate of quarterly growth was good news for people trying to enter the market. “The affordability issue has been in the spotlight in recent months and while the median house price has risen again, it was at a much slower rate which indicates relief for aspiring homebuyers,” Mr Turner said. “These figures reflect the anecdotal evidence we’ve been hearing from agents out in the field who are saying sale volume and prices have started to ease as a result of the two interest rate rises earlier this year.”

Mr Turner said despite this expected slow-down, investors were still well placed in the Adelaide market due to its affordability. “The positive thing about Adelaide is that for existing homeowners and investors, history shows that there is rarely any backwards movement so their assets are still in good shape,” he said. “Affordable areas are still going well and will sustain the property market over the next few months.

Adelaide Top Performing Suburbs Median House Prices
March Quarter 2008

assumed exchange rate $1.00 = £0.48