South Australian Home Value Increase

THE value of South Australian homes has increased and more were sold at a profit for their owners compared to the same time last year, new figures from RP data have revealed.

The Pain and Gain report showed 88.4 per cent of homes across Adelaide were sold at a profit in the June quarter, compared with 86.2 per cent in the June 2013 quarter.

The median house price also increased in the last quarter by 3.1 per cent to $390,000 — the third-biggest increase in the country behind Sydney and Melbourne.

Real Estate Institute of South Australia chief executive Greg Troughton said the good results were a sign of a strengthening real estate market.


“It reflects the state of the market in terms of a low level of listings … less stock means more demand so therefore I am not surprised to see the loses to be reduced,” he said.

“We have had a very interesting year with two elections (last financial year), that brings a lot of uncertainty, at the moment there seems to be a bit of speculation entering into the marketplace.

“People are holding homes for less time, particularly investment properties … when you see the changing dynamics along those lines you can expect to see the results we are seeing.”

The Prospect council area had the highest proportion of homes sold at a profit — 95.8 per cent — which Mr Troughton said was because of its proximity to the city.

“The blue-ribbon areas show they are a rock-solid investment, only less than one in 20 sold at a loss … it shows that location is a factor,” Mr Troughton said.


Harcourts Brock Williams partner John Williams said Prospect’s location close to the city and Adelaide Oval was a factor in its strong results.

“Prospect is nestled next to Medindie, College Park and North Adelaide, it is logically a great location, and with the excitement going on around North Adelaide and the new Adelaide Oval, as North Adelaide gets an injection that flows on to the neighbouring suburb,” he said.

He said the low level of stock on the Adelaide market for the last eight months was good for vendors.

2 Pages Rd, Mitcham is seeking $1.1 million. Picture: Source: Supplied

“The real estate market is a lot like the stock market, it goes up and down, and that is driven by consumer confidence,” Mr Williams said.

“In Sydney you can get a 20 per cent increase but with that can come a 20 per cent decrease but Adelaide is a much safer market, if you buy well and make some good improvements you can still sell really well.


“What is coming on the market, if it is priced right, it is selling within three or four weeks.”

RP Data senior research analyst Cameron Kusher said the decrease of loss-making resales across the country was likely to continue.

“Obviously pretty low interest rates, property prices are increasing across most areas I expect we will see a continuation of that trend,’’ he said.


“On a historic basis it is still quite high so you would think it would come down further from where we are at the moment.’’

He said with interest rates tipped to remain low for the foreseeable future, property prices should continue to rise.

“Most people think that property values will continue to trend higher so that is good news for anyone wanting to sell their property,” he said.

“It really highlights that if you buy and sell in a short period of time you have a much greater risk of loss.’’


13 Minchinbury Terrace, Marion priced between $445,000-$465,000. Picture: Source: Supplied


Prospect — 95.8%

Norwood Payneham and St Peters — 94%

Marion — 93.8%

Walkerville — 93.3%

Campbelltown — 93.3%

Unley — 93.1%

Mitcham — 92.5%

Burnside — 91.3%

Tea Tree Gully — 90.2%

Adelaide Hills — 89.7%

Source: rea

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