The SA regions with the highest share of short-term resales

An increasing amount of properties on the market were snapped up in the past three years, new data reveals. So why are SA homeowners so quick to cash in?

Homeowners in one SA region are selling the properties they bought less than three years ago more than any other.

The state’s South East corner – which includes the Fleurieu-Kangaroo Island, Limestone Coast and Murray and Mallee regions – has the highest share of short-term resales, according to Latest PropTrack data.

It shows 17.9 per cent of the properties listed for sale in the past six months were on the market less than three years ago.

The Mount Gambier property at 90 Wehl Street North sold in November 2021 for $162,000 and again in October 2023 for $390,000. Picture: realestate.com.au

The Naracoorte property at 19 Lochiel Ave sold in August 2021 for $150,000 and recently in September 2023 for $215,000. Picture: realestate.com.au

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The Barossa-Yorke-Mid North region followed, with 16.9 per cent of the properties on the market there being short-term resales, then Adelaide-Central and Hills at 16.4 per cent and Adelaide-North at 15 per cent.

PropTrack senior economist Paul Ryan said there had been a “significant” increase in the share of properties that had hit the market again after selling within the previous three years.

“The last time we saw an increase of this size was at the start of the pandemic,” he said.

There were many reasons it could be happening, but Mr Ryan said the main one was that strong price growth over the past few years meant many people had more cash to upgrade their homes.

“In the lending data, we’re seeing buyers who have larger deposits – 40 per cent of the home value or more,” Mr Ryan said.

Alternatively, he said some might be people who bought when interest rates were low so were now selling because they were under greater financial pressure.

“There will be people who are struggling with rising interest rates,” Mr Ryan said.

He believed the share of properties on the market that had sold in the past three years would continue to increase going forward.

The Mount Pleasant property at 1 William St sold in August 2020 for $270,000 and again in August 2023 for $495,000. Picture: realestate.com.au

Ray White Mount Gambier principal Tahlia Gabrielli had noticed the trend over the past year and also believed it would ramp up, especially after Christmas.

“I think a lot of people will be holding off selling until then,” she said.

As a market that thrived during and after the pandemic, Ms Gabrielli said some homeowners were selling up now to cash in as their property values had grown so much.

However, she also said many were investors who purchased in the region to make the most of the strong rental return as people flocked to the area for more space and a better lifestyle during the pandemic.

“Now they’re looking at whether it’s a good idea to keep holding it with interest rates going up,” Ms Gabrielli said.

“Some people are looking at how much it’s costing them to hold their properties.

“People are weighing up what’s best for them.”

Meanwhile, the share of properties on the market in the past six months that have sold in the past three years for SA’s remaining three regions were all below 15 per cent.

South Australia-Outback had 14.4 per cent, Adelaide-West had 14.2 per cent and Adelaide-South had 13.2 per cent, according to the data.