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Adelaide median home price rises

Adelaide house prices have risen by more than 6 per cent in the past year and further strong growth is forecast for the year ahead.
Adelaide house prices have risen by more than 6 per cent in the past year and further strong growth is forecast for the year ahead. Official Valuer-General figures, released exclusively to The Advertiser, reveal the metropolitan median price rose 6.25 per cent to $382,500 in the December quarter 2009, compared to the same period in 2008.


Across the state the improvement was almost as dramatic, with a 5.77 per cent increase to $352,000.

A year ago, the annual increases were only 1.4 per cent for the Adelaide metropolitan area and 4 per cent for the state as a whole.

The latest results impressed Real Estate Institute of SA president Michael Brock, who said the figures were particularly promising given the Federal Government's First Home Owners Boost was halved during the December quarter.

"This clearly demonstrates the faith people have in investing in bricks and mortar, and the reliability of the property market in Adelaide and South Australia," he said.

"It gives us plenty of confidence that the property market will continue to grow now the boost has finished and we have reverted back to the existing $11,000 grants for established homes.

"People will still continue to enter the property market because they know it is a good investment, not because they get a one-off cash bonus."

Somerton Park topped the list with massive growth of 35.64 per cent on last year.

The list was based on suburbs with 10 or more sales in the quarter.

It was followed by Broadview (28.42 per cent) and Willaston (22.37 per cent).

Western suburbs Clarence Gardens and Dover Gardens, and Burton in Adelaide's north, also made the list, increasing by 22.21 per cent, 21.93 per cent and 21.57 per cent respectively.

Describing Somerton Park as "ideal for families", agent Jacque Opie said the suburb had benefited from the price rises of neighbouring Glenelg.

"I think people have realised it's been a bit of a hidden secret for a little while," she said.

"A lot of people try to go to Glenelg but because Glenelg has gone up so much people have started to look further afield.

"The beaches down there are gorgeous and they not as well-known as Glenelg."

Greg and Larissa Lambert, both 38, were aware of a projected boom for Somerton Park before they purchased there last year.

Mr Lambert said the Valuer-General figures supported one of their reasons to purchase.

"We like the area and we thought it would be an area that you'd get good capital growth in," he said.

The figures also show a 2.04 per cent growth in South Australia's rural areas, while metropolitan units were up 3.10 per cent.

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