Adelaide delivers, as predicted

Posted on 12/01/2008  

Don't say we didn't warn you. For the past year so we've been shouting about Adelaide as the growth market to be in.

Early in 2007 I used my regular "Hotspotting" column in the national newspaper The Australian to predict that Adelaide would be the surprise out-performer of the year. It has certainly delivered on its promise.

The Adelaide market picked up pace in the second half of 2007, with its median price growing almost 8% in the December quarter alone. In the past 12 months, Adelaide prices have grown an average 18.6%.

It's the biggest quarterly rise since mid-2003, when the city was in the grip of the previous boom cycle. The median house price for Adelaide is now $350,000 - while statewide the median price is $320,000, after growing 9% in the December quarter.

More than 100 of Adelaide's suburbs had price rises above 20% in 2007. Some of the biggest growth has been in areas recommended in the South Australia Hotspots report available on this website, including parts of the Elizabeth precinct, which grew more than 40%, and Underdale (part of the Thebarton precinct) which also jumped more than 40%.

There was an even bigger leap in apartment prices, with the city median growing 25% during the year.

Adelaide Bank executive John Oliver says the state's housing market will continue to grow as long as the resources boom continues and the national economy remains in good shape.

"The enormous amount of new housing construction occurring in the north of Adelaide is proof of the continuing housing boom in South Australia," Oliver says.

"In the longer term, if our exports to China continue to grow, SA can expect to see further investment and growth in the resources sector. This will further boost growth in the housing industry."

ENDS

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