Adelaide has led a housing market rebound that has seen house prices Australia-wide increase 6.6 per cent in the first half of 2007. The 11.6 per cent price increase for the city of churches was followed by a 10.6 per cent rise for Brisbane and a 7.9 per cent increase for Melbourne.

While nationwide house prices increased 6 per cent, the unit market performed even better with an 8.5 per cent rise, according to a survey conducted by researchers RP Data and financial group Rismark. Their latest index also revealed that Sydney houses experienced their strongest growth in years, with a 3.4 per cent rise during the six months to June 30.

The study found Australia's median house price was now $459,402, while the median unit price was $365,322. According to the findings, Adelaide also had the biggest price increase in the 12 months to June 30, with a rise of 21.9 per cent. Brisbane home prices increased 15.7 per cent, Melbourne's 10.2 per cent, Darwin's 14.2 per cent, Perth's 8.6 per cent and Sydney's 4.7 per cent.

The once booming Perth market had sluggish growth of just 1.5 per cent, but Perth and Sydney remained the two most expensive cities to live in with median house prices of $505,115, and $559,770 respectively. They were followed by Brisbane ($411,491), Melbourne ($402,817) and Adelaide ($359.504).

Rismark International chief Christopher Joye said while some commentators had forecast a housing market contraction over the next five years, Rismark had been insistent in forecasting - outside of Western Australia - a robust rebound in 2007-08. He said the striking recovery in the national housing market over the past six months vindicated its forecasts, which could be attributed to a fundamental discount between the demand for new housing and the availability of supply.

Maurice Dunlevy | September 04, 2007 | The Australian