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Homeowners hold on tight in high value suburbs

Leafy inner southern suburbs and coastal hotspots such as Glenelg proved the most tightly held by homeowners during Adelaide’s 2021 real estate boom.

Feb 07, 2022, updated Feb 21, 2022
Picture: Tony Lewis/InDaily

Picture: Tony Lewis/InDaily

New data released by South Australian-based property technology company PointData reveals the percentage turnover of properties by suburb across metropolitan Adelaide in the 12 months to the end of November.

The suburb of Kings Park, which has a median value of almost $1.2 million, was the most tightly held with a turnover of properties of just 1.3 per cent.

Fellow inner southern suburbs Clarence Park (2.4 per cent) and Everard Park (2.7 per cent) were also in the top 10.

Glenelg has a median house value of just over $1 million and was ranked second with a turnover rate of 1.5 per cent.  Glenelg South (2.9 per cent) was 9th and Glenelg East (3 per cent) 11th.

PointData’s Head of Planning Ben Russ said an analysis of the data revealed a stark difference in sales turnover across metropolitan Adelaide, where the median sits at 5.6 per cent.

“Suburbs with established properties such as the inner-south and east have properties at high price points that are rarely subdivided or redeveloped, ensuring a low turnover rate,” he said.

The data also shows Adelaide’s CBD recorded one of the lowest turnover rates for property in South Australia, at just 3.1 per cent as a travel ban on international students and migrants dampened demand during the past year.

“The CBD is an area that is not seeing many changes of ownership,” Russ said.

“The chief reason for this is a reduction in the demand typically associated with international students.”

At the other end of the scale, areas with a steady supply of new housing stock, such as Tonsley (41.3 per cent), Angle Vale (32.1 per cent) and Munno Para West (20.4 per cent recorded much higher turnover rates.

“As you would expect, where property is being built to be listed immediately, there is a higher rate of sales turnover,” Russ said.

“These newly developed areas, as well as suburbs undergoing steady rates of urban infill such as Gepps Gross (10.9 per cent), Enfield (9.7 per cent) and Keswick (9.5%), are providing opportunities for first-home owners to enter the market because of land sub-division.

“We would expect to see more infill in the coming years to meet the significant demand in housing from multiple categories of buyers including first-home owners, returning workers from interstate as well as international migrants that will resume migrating to Australia once border policies are normalised.”

According to CoreLogic data released last month, Adelaide house prices grew by 23.2 per cent in 2021 to a median value of $569,882.

The sharp rise in prices is due to a combination of booming demand on the back of low interest rates and a lack of supply.

Established in 2014, PointData values 1.5 million properties a week across South Australia and Western Australia and is currently rolling out its technology to the eastern states.

The Adelaide-based company applies artificial intelligence and machine learning algorithms to over 660 million unique data points to provide information to enterprises servicing the residential property market and its consumers.

The platform also identifies sites across Australia that can be subdivided and forecasts a site’s true potential.

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