The South Australian market is showing signs of a recovery, with sales volumes up strongly and median prices rising also.

The Real Estate Institute of South Australia says the state’s median house price rose 2.3% in the June Quarter to $330,000 (which is still 1.5% below the level of a year ago) while the median price in metropolitan Adelaide reached $358,000, up 0.85% for the quarter.

REISA President Robin Turner says the latest statistics confirm earlier suggestions from real estate practitioners that market activity had picked up towards the end of the March Quarter and beyond.

“The critical indicator is the marked increase in the volume of sales this quarter,” Turner says.  “Sales volumes are up nearly 10% in the previous quarter.”

Suburbs that recorded the best growth in the June Quarter were predominantly in the more affordable outer Western and Northern suburbs.  Royal Park, Allenby Gardens and Tea Tree Gully were standout performers, experiencing growth of 26-28%.

Apartments in the CBD continue to be a popular investment option. “The appeal of inner-city living is definitely increasing, with the number of units sold increasing significantly this quarter.  This is largely due to the newly-developed apartment block The Precinct, which accounts for over half of CBD apartment sales.”

The median price for units in the inner-city increased to $377,450 – growth of 3.4% for the quarter and a rise of 6.9% over the past year.