ABS confirms solid Adelaide house price growth in 2015

Latest data from the ABS has confirmed that Adelaide house prices recorded solid growth over 2015 reflecting other reliable measures of housing market activity.

The ABS established house price index for Adelaide increased by 1.3 percent over the December quarter which was the strongest quarterly rise reported since December 2013. Adelaide established house prices increased by 3.9 percent over 2015 again the best annual result since 2013 and the second best result since 2009.

Solid house price growth for Adelaide reflects earlier Domain Group research reporting local prices rising annually by 6.7 percent but is in sharp contrast to recent published reports of falling Adelaide house prices over 2015.

Rising established house prices over 2015 is confirmed by ABS residential finance data revealing that the average South Australian owner-occupied home loan excluding home loan refinancing increased by 5.7 percent over 2015. Similarly, the total value of South Australian home lending inclusive of both investors and owner-occupiers increased by 5.5 percent over the year.

Although Adelaide houses prices recorded solid growth over 2015, unit prices reported only modest growth by comparison. Unit prices decreased by 0.4 percent over the December quarter to be up by just 0.9 percent over the year.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson