Adelaide’s fastest growing and most expensive suburbs

The Adelaide housing market has enjoyed solid growth this year, with buyer activity clearly on the rise.

The median house price increased by 4.9 per cent over the first three quarters to September, and the local market is on track to exceed last year’s full year growth of 5.1 per cent.

A number of suburbs have recorded strong price growth over the year ending September, with confidence continuing to rise in the local market.

The fastest growing Adelaide suburb for house prices was Rostrevor, up by 17.9 per cent over the year to a median of $551,250. Noarlunga Downs was up 14.7 per cent to $339,000, Torrensville up 14 per cent to $553,000, Flinders Park up 12.8 per cent to $530,000 and in Northfield the median house price increased by 12 per cent to $420,000.

The top five suburbs for median house prices recorded over the six months ending September were Unley Park with a median of $1,850,000, Toorak Gardens $1,660,000, Rose Park $1,170,000, St Peters $1,100,000 and Leabrook $1,017,500.

Low and falling interest rates have been a key catalyst for a strengthening Adelaide housing market this year. The Reserve Bank will meet next week for the final time this year to decide the direction of rates until the next meeting, scheduled for February next year.

Official rates are likely to remain on hold for the seventh consecutive month after some better economic news over the past month. The national unemployment rate dipped below 6 per cent and the stockmarket has stabilised after a period of volatility. The Reserve Bank is also likely to wait on the decision by the Federal Reserve Bank on United States rates, due later in December, which may have a significant impact on the local currency.

Dr Andrew Wilson is Domain Group senior economist Twitter@DocAndrewWilson