Adelaide’s High End Market Surging Ahead

WHEN it comes to premium South Australian housing, $3 million is the new $1 million, real estate agents say, reporting strong demand for multimillion-dollar homes.

Klemich Real Estate agent Matt Smith said the agency had placed three prestige homes at Prospect, Kensington Gardens and Malvern under contract in the past week – each for more than $3 million.

“The Malvern and Kensington Gardens properties in particular attracted multiple offers and significant interest,” Mr Smith said. “They were both landmark properties in blue-chip suburbs offering good family accommodation and plenty of land with swimming pools.”

According to CoreLogic, 28 SA suburbs have a median sale price of more than $1 million.

This is up from 23 this time last year and up on the 18 recorded in 2016.

“I remember when I got my first $1 million dollar listing, I thought I’d made it as an agent, whereas now I have an average sale price of $1 million – the benchmark has just gone up so far,” Mr Smith said.

“Decades of data tells us it will continue to grow – how high, who knows. You can’t help but think there has to be a limit, but then the boundaries year after year keep getting pushed.”

Mr Smith said it had been a great year for premium sales. “There is a significant number of buyers out there for homes at $3 million-plus,” he said.

Harcourts Williams partner Stephanie Williams has sold several homes in excess of $3 million in recent months – including 23 Cygnet Court, Glenelg North – and said the benchmark for premium property was significantly higher than the $1 million it was just five years ago.

Mrs Williams said, aside from local buyers, there was strong demand coming from interstate and from ex-pats returning from overseas. She said the investment was driven by SA’s quality schooling and general market confidence.

“We’ve shown some growth, which is fantastic, and there’s some strong business confidence in the air which is great, because when you’ve got confidence in the state people want to spend money,” Mrs Williams said.

“The market strength has carried through from last year … it’s performing extremely well and it will continue to.”

Mrs Williams said, with listings still reasonably tight, demand would continue to drive the prestige market right through to Christmas, but she said premium homes sell well at any time of year.

“I sold homes in both Tennyson and Glenelg this winter with great interest and in record time,” she said.