Fierce demand for land coupled with a new wave or supply in Adelaide’s north and south is driving up both sales and prices, new data reveals.
Oliver Hume’s latest Quarterly Market Insights for September showed the volume of land sales across the city was up almost 20 per cent on the previous quarter from 508 to 604.
Volumes were now closer to the longer-term average sales rate but still three per cent lower than those in the same quarter last year and down 25 per cent on a rolling 12-month basis.
Meanwhile, the median lot price rose four per cent to a new high of $349,990, with annual growth at 30 per cent.
MORE:‘Very profitable’: Property package generates $6m-plus a year
Land sales and prices rose across Adelaide in the September quarter, new data reveals.
Price growth was slightly stronger on a price-per-sqm basis, rising 5.9 per cent for the quarter and 43 per cent for the year to $919.
It comes as the median lot size fell to a new low of 381sqm, which was almost 10 per cent smaller than that of the same time last year.
Oliver Hume chief economist Matt Bell said Adelaide prices were closing in on those in Melbourne and South East Queensland, but they weren’t likely to overtake them.
“While gross Adelaide land prices remain more affordable than both Melbourne and South East Queensland, in price-per-sqm terms Adelaide sits only 15 per cent behind Melbourne,” he said.
MORE: Is this Australia’s cheapest home?
Oliver Hume chief economist Matt Bell.
“I think Adelaide will maintain that affordable advantage though.
“Our outlook for Adelaide is positive.”
Mr Bell said Adelaide was one of the hardest markets to forecast because it was so dependant on what was released to market.
“Adelaide demand remains strong, with sales activity expected to pick up across both the southern and northern corridors as new supply comes to market,” he said.
“As overall market activity returns to longer-term average levels, we anticipate sales growth to moderate slightly, while transaction volumes are likely to remain elevated compared to the first quarter of 2025.”
Mr Bell said higher than expected inflation figures revealed today would have an impact on the market as it made it “unlikely” there would be any more rate cuts this year and maybe one next year.
MORE: Property trend growing in tight market
Master Builders SA chief executive Will Frogley.
Master Builders SA chief executive Will Frogley said land supply remained a major issue in Adelaide, which meant prices were likely to continue rising.
“I think it’s still going to go up over the next year,” he said.
He said more land would be released once vital infrastructure, including roads and sewerage and water systems, was established in the growth corridors.
“The government is working really hard on this, they’re throwing a lot at it,” he said.
“Whether it’s land or housing, we don’t have a demand problem, we have a supply problem.
“I think housing is one of the top challenges facing the state at the moment, without a shadow of a doubt.”
English (US) · 