Winners and losers: SA fires as other state’s boom goes bust

Adelaide is leading the nation for the number of profit making resales since the peak of the pandemic. Find out which suburbs are performing strongly for sellers and which ones you’ll struggle to sell in.

Tom Bowden and Samantha Healy

2 min read

February 18, 2023 - 6:00AM

News Corp Australia Network

Property

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The effect of interest rate rises is starting to be seen across South Australia, but the Adelaide market has not felt their bite to the same extent as other states.

According to exclusive sales analysis by Suburbtrends, of the 306 properties bought in SA between January 2020 and the end of December last year and relisted within the past three months – eight interest rate rises later – only seven (just over 2 per cent) have sold for less than what their owners bought it for.

A further 15 sold for the same price they paid for it, which, when you factor in stamp duty costs, would still result in a financial loss.

The data highlights the strength of the SA market, with 12.2 per cent of properties bought and sold during the same period in Melbourne selling for less than what they were bought for, 6.4 per cent in Sydney, and 4 per cent in Queensland.

Murray Bridge was identified in Suburbtrends data to be a difficult market to sell in. Picture: Mark Farrell/Facebook

Suburbtrends founder Kent Lardner said there were many reasons why relistings were on the rise – from cost of living pressures to homesickness and lack of job opportunities.

“Many home buyers who are already feeling the pinch financially may be deciding to sell up,” he said.

“This might remove the stress associated with larger mortgage repayments, however many of the top regions for resellers are also some of the worst rental markets in the country.

“Many home buyers in the top reseller regions are people who moved away from the city during the Covid-19 pandemic and some may now regret their decision and choose to move back to the city.”

12 Hillview Street, Crafers West. From realestate.com.au

According to the data, the seller of a home at 12 Hillview St, Crafers West took the state’s biggest hit for the period.

The property sold in August 2020 for $1.325m, later selling it in January this year for $1.15m – a drop of $175,000. And this doesn’t include stamp duty the seller paid on the property, which RevenueSA shows would have been $66,705, or a potential $159,455 if it were bought by a sole foreign buyer.

Mount Barker had the highest number of relistings for the period with 14.

Suburbtrends said sellers who bought at the height of the pandemic should have a reasonable chance at reselling for a profit in the suburb if properties are priced right, based on demand and recent value growth.

Mount Barker is a seller’s market, according to Suburbtrends. Picture: Tricia Watkinson

Murray Bridge, on the other hand, which had 13 house resales for the period, was identified as a difficult market to sell in.

Despite some sellers recording losses and some suburbs experiencing short-term value decline, PropTrack economist Angus Moore said real estate was typically a long game and people should not panic.

“Most people don’t buy and sell in six months so what happens on a month-to-month basis should not affect many people,” he said.