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ADELAIDE homes are worth an average $33,000 more than they were a year ago. In the 12 months to December 2003, Adelaide's median house price rose from $209,000 to $242,000 - the 25.39 per cent rise being the second biggest yearly increase on record.
The December figures by the State Valuer General, showed the Adelaide housing market bounced back after slower growth of property prices from July to September.
Prices grew just 3.41 per cent in that quarter, but end-of-year growth jumped to 5.68 per cent.
The state's median house price also grew significantly during the past year - an 8.37 per cent rise in prices paid for houses in the last three months of 2003.
This took the median price to $220,000, up 25.71 per cent from $203,000 for the preceding year.
Real Estate Institute of South Australia president Robin Turner said the figures demonstrated stability in the market, defying speculation that house prices would fall.
"Adelaide still represents great affordability compared to the eastern seaboard, so we have room for rises," Mr Turner said.
"The state has blossomed. Adelaide is a relatively big city by international standards and, when people feel confident in their city, that drives prices up."
Units and apartments in the central area and North Adelaide had dropped in value by 2.33 per cent in September, but grew 8.41 per cent in the last quarter. The median price is up to $265,500 from $244,900 three months ago.
The volume of apartment sales was also up 50 per cent on the same time the previous year and this helped to drive prices up.
The unit market across metropolitan Adelaide rose 2.86 per cent in the quarter and jumped 17.94 per cent over the 12 months.
Mr Turner said positive growth across all sectors was a sign house prices would be steady in 2004.
"I don't think we'll see a repeat of last year," he said.
"I think we'll start to see prices rise more in line with the CPI."
The outer coastal suburbs continued to perform well, with Reynella, Aldinga Beach and Christie Downs all recording annual growth of more than 30 per cent.
The north also fared well with price increases of more than 30 per cent in suburbs including Davoren Park, Elizabeth North, Elizabeth Downs, Parafield Gardens and Paralowie.
Growth in selected regional areas was also positive, with house prices improving by 22.77 per cent in "Rural Growth Areas".
The biggest growth was in Millicent where, in the last three months, prices were up 40.63 per cent to $123,750 and 58.65 per cent over the year.
Mt Barker also continued to show growth with a 27.99 per cent jump to $203,500 for the year.
Sturt was among the top performing suburbs, median house prices rising by 37.38 per cent over the year to reach $205,000.
Mr Turner said the outer suburbs were the strongest performers this quarter because of a lack of stock in other areas.
The average Bank SA investment loan has grown from $156,981 in 2002 to $200,413 last year. In contrast, owner-Occupier loans have grown from $128,000 to just $139,274.
By Peter Wood
Adelaide Advertiser