Property
Issue No. 62 - December/January 2011
National slump causing SA price slide
by Mr Kel Spencer
Median house prices in the Adelaide market continued to fall in the September quarter, with a recorded median at $385,000, down 4.9% from June 2011 and down 3.7% year-to-date.
Price levels are still being affected more by national economic factors and confidence than by local issues although some commentators are suggesting state political uncertainty has contributed.
People don’t buy houses when they hold a pessimistic outlook.
This outlook is largely unwarranted in SA.
Capital City Comparison
Adelaide’s median house price has decreased by 3.7% for the year to September 2011, while unit prices decreased 3.3%. This compares to Sydney(-5.1% and 1.7%), Melbourne(-2.8% and –0.4%), Brisbane(-5.4% and –2.6%), Darwin(-1.6% and –0.3%), Canberra(-3.6% and 2.4%), Hobart(-1.7% and –5.0%), and Perth (-5.2% and –4.6%).
Median Unit Price
Median unit prices in the Adelaide market fell in the September quarter, wiping out the gains achieved in the prior nine months. The September 2011 median price is $319,000, down 6.1% since June 2011 and down 3.3% year-to-date.
The Adelaide central and regional markets are primed to benefit from large capital injections from a number of industry sectors so it is difficult to fathom such large drops in median price.
Median Rent
Rental rates in the September 2011 quarter remained level for units but increased slightly for houses. Demand was still high in the inner-city, and also increased regionally. The September quarter recorded a neutral position in 2 bedroom unit rents at $400 per week, while 3 bedroom house rents rose 2.1% to $480 per week.
Unit rents have increased 0.0% for the year-to-date, with houses 2.1%. Vacancy rates for Adelaide City are 1.7%, up from 1.6% in the June quarter.
Dwelling Approvals
Dwelling approvals for the September 2011 quarter have continued to decline with the latest figure recording 735 for the month and 2254...
