![\"South](\"https:\/\/fmsto.blob.core.windows.net\/cms\/images\/055\/0004_637727202655352905.jpg\")
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South Australia and Adelaide<\/a> have beaten the typical third quarter slowdown, as the latest quarterly data show new record highs for both house and unit prices.<\/p>\n According to the Real Estate Institute of South Australia (REISA), the state\u2019s median house prices posted a 9.66% annual increase and 1.49% quarterly increase over the September quarter.<\/p>\n REISA CEO Barry Money said these results are significant, given the third quarter of the year is traditionally the slowest period for the housing market.<\/p>\n \u201cOnce again, vendors undoubtedly are the winners thanks to the new record median price which climbed to $560,000 this quarter across metropolitan Adelaide,\u201d he said.<\/p>\n Beaumont, Bridgewater, and Gulfview Heights are the three suburbs with the highest annual growth rates, up by 89.9%, 85.5%, and 57.4%, respectively.<\/p>\n Sellicks Beach, Smithfield Plains<\/a>, and Broadview also performed strongly, with price gains going above the state average.<\/p>\n In terms of sales, however, Mount Barker<\/a>, Morphett Vale<\/a>, and Craigmore recorded the highest volume, followed by Mount Barker, Morphett Vale, and Craigmore.<\/p>\n Mr Money said these suburbs consistently recorded elevated housing demand over the past months.<\/p>\n \u201cThis is a clear demonstration that the key drivers of buyer and investor sentiment include affordability, development potential and rental return,\u201d he said.<\/p>\n Mr Money said South Australia and Adelaide\u2019s housing markets continue to be a significant consideration for many homebuyers and investors looking to break into the market.<\/p>\n \u201cInvestors continue to flock to South Australia attracted by comparatively high rental yields but now strong capital growth,\u201d he said.<\/p>\n \u201cHowever, limitations in supply alongside favourable macro-economic factors such as interest rates and consumer confidence will continue to drive prices upwards and render housing affordability an ongoing struggle for first-home buyers.\u201d<\/p>\n Separate research from Domain showed that house and unit prices in Adelaide are now at new record highs.<\/p>\n Over the September quarter, house prices jumped 5.6% to a new record high of $667,888.<\/p>\n Meanwhile, unit prices reached a new record with a 5% gain to $357,615.<\/p>\n The report said house prices in Adelaide increased by $307 daily over the past 12 months to September, which is the largest on record.<\/p>\n \u201cPressure still remains on buyers as demand outstrips supply and price growth remains positive. But there are signs conditions could be changing as house price growth moderates by one-third compared to last quarter,\u201d the report said.<\/p>\n However, while buying demand remained strong, it appears to be easing as the number of home loan financing started declining from their recent peaks.<\/p>\n On the supply side, the number of homes available for sale declined 28% below the five-year average.<\/p>\n \u201cWhile conditions remain skewed towards sellers, as new listings track higher and buyer demand eases, supply should begin to normalise,\u201d the report said.<\/p>\n \u2014<\/p>\n Photo by Gilly Tanabose on Unsplash.<\/em><\/p>\n<\/p><\/div>\nNew record for unit and house prices<\/h2>\n