House prices climb to record levels

South Australia’s median housing price continues to increase, with data shared by the peak body representing the state’s real estate agents indicating the median price now sits at $450,000.

According to the Real Estate Institute of South Australia’s market update for the March quarter and data from the state government, the median price of housing in metropolitan Adelaide and in major non-metro towns increased to $518,000 and $280,000, respectively.

The hike in metropolitan Adelaide’s price represents another “record high”; however, the $280,000 recorded for non-metro towns has already been achieved, but not since the December 2019 quarter.

However, individually, Mount Gambier has seen a quarterly increase to its median housing price to $295,000 for the March quarter, with 177 sales made during the quarter. While this represents an increase from Q4FY20 levels, the current median price is still down on the median price for last year’s September quarter when it reached $300,000.

Both Millicent and Berri recorded an increased number of sales for the 2021 March quarter, too, with 39 and 29 properties sold, respectively. Of the Limestone Coast’s towns reported on in the latest market update, Millicent and Naracoorte saw increases to their median house prices for the March quarter at $195,000 and $239,000, respectively.

This came despite fewer property sales recorded in Naracoorte for the quarter with 40 sold. REISA said the continuation of South Australia’s “record-breaking streak” in increases to the median housing price showcased the confidence of the market.

The institute also claims that any decreases to the median housing price in certain local government areas year-on-year, including Naracoorte (-2.45%), may not reflect sales results. Instead, the REISA said “this may be more a reflection of stock availability” as some of the institute’s members are “advising us that – on the whole – vendors and purchasers are entering the marketplace in massive numbers”.

“This demonstrates significant confidence in the market and a willingness to pay for properties that not only reflect the desirable nature of South Australian liveability but are realistically and transparently priced and marketed,” the REISA said.

Real estate agents have previously advised The SE Voice of a lack of houses and rental properties to meet demand in Mount Gambier. It comes after the South Australian real estate market recorded a previous record high median house price in Q420, with metropolitan Adelaide’s median housing price at $440,000 for the period.

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