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Adelaide is the surprising Aussie city where the housing market is surging as recovery begins

Revealed: The surprising Australian city where house prices are surging as the property market begins to recover from a downturn

  •  Posh suburbs lead the fragile house price recovery, typical for early in the cycle
  •  Adelaide has five of the top 10 price performing suburbs for houses
  •  Torrens Park was the city’s best performing suburb, ranked number two

South Australia has dominated the housing market with the best performing suburbs in the past year as economists hope a fragile recovery can be sustained. 

Adelaide has surprised the housing market with five of the top 10 suburbs for median price rises over the last year, according to new figures from REA Group.

The suburbs of Torrens Park, North Adelaide, Gulfview Heights, Aldgate and Brighton all rose by more than 15 percent in the year to October 31, the REA Group said.

South Australia has dominated the housing market with the best performing suburbs in the past year as economists hope a fragile recovery can be sustained. Pictured: A home in Brighton, South Australia

Adelaide has surprised the housing market with five of the top 10 suburbs for median price rises over the last year, according to new figures from REA Group. Pictured: A home in Gulfview Heights

Adelaide has surprised the housing market with five of the top 10 suburbs for median price rises over the last year, according to new figures from REA Group. Pictured: A home in Gulfview Heights

Australia’s fifth most-populous city showed its strength as economists hope the emerging property market recovery can be sustained after a two-year downturn. 

Torrens Park was the city’s best performing suburb, ranked number two in the list, with a price rise of 23.3 percent. 

The leafy upper-class suburb in the inner-southern suburbs is nestled in the Adelaide foothills close to Flinders University.

REA Group chief economist Nerida Conisbee said early in the property price cycle, buyers tend to flock to the top end of the market first, choosing the best suburbs.

‘We’ve seen it show up in search for quite some time. When we look at suburbs people have been looking at, they have tended to be very expensive suburbs, which is quite different to when the market was really strong,’ she told news.com.

Ms Conisbee said the South Australian housing market had weathered the housing downturn with fairly stable prices because it was less prone to speculation.

Digital Finance Analytics chief economist Martin North said there was no real property market recovery yet,  with growth areas limited to just a few premium postcodes.

Australia's fifth most-populous city showed its strength as economists hope the emerging property market recovery can be sustained after a two-year downturn. Pictured: A home in North Adelaide

Australia’s fifth most-populous city showed its strength as economists hope the emerging property market recovery can be sustained after a two-year downturn. Pictured: A home in North Adelaide

‘We are seeing some pockets of growth – mostly premium houses,’ he told Daily Mail Australia on Saturday.

Mr North said the lift in some Adelaide suburbs was because it has less units and more houses.

‘Units are on the nose with poor construction and cladding issues,’ he said. 

Mr North said sales volumes were also down, with indices often not transparent, making it difficult to know if a recovery was beginning.

TOP TEN BOOM SUBURBS FOR HOUSE PRICE GROWTH TO OCTOBER 31, 2019
Rank  State  Suburb  Median sale price Year-on-Year
change 
NSW  Vaucluse  $6,450,000  25.2% 
SA  Torrens Park  $900,000  23.3% 
QLD  Windsor  $905,500  19.1% 
WA  Cannington  $485,000  18.3% 
SA  North Adelaide  $1,055,000  17.9% 
SA  Gulfview Heights  $526,000  16.9% 
SA  Aldgate  $850,000  16.8% 
8 QLD Northgate  $695,000  16.8% 
SA  Brighton  $728,000  14.8% 
10  NSW  Palm Beach  $3,450,000  15.5% 
Source: rea-group.com 

 

 

Read more at DailyMail.co.uk


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