Regional SA Property Market Update December 2019
Mount Gambier Property Updates
Mount Gambier is the second largest city in South Australia with a population of approximately 28,000 people. We are famous for the Blue Lake which is a dormant volcano sitting quietly providing fresh drinking water for the region.
At the beginning of the year, our outlook for 2019 was that the housing market would remain relatively stable throughout the year. As can be seen in the graph below, our predictions were correct. House sales volumes for 2019 were at similar levels to where they have been since 2014, as there have been no obvious indicators that have had a significant impact on the local economy and property sector. Overall, we score ourselves a ten out of ten for our predictions at the beginning of the year.
The Mount Gambier property market has performed at a similar level to 2018 with a slight increase in the median house price (approximately four percent). House sales are currently sitting at a similar level to the preceding years with total houses sales at year-end expected to be 400 to 450. This is expected given there have been no major employment or population boosts over the past 12 months. The market has generally remained stable, which considering current economic conditions provides confidence in the local market.
The best performing price range over 2019, which has been the best performing price range over the past few years, is $200,000 to $300,000 which is where the median house price sits. The price range provides an entry point for first home buyers, people looking to upgrade their home and investors given the good rental returns. A price range which has seen an increase in sales numbers is $400,000 to $500,000. Typically this price point has been less active, however, a number of well-located central houses have sold, as well as higher-end modern houses. Sales in this price range have doubled since 2014 which does show confidence in the local property market with higher value properties selling.
In summary, the housing market for Mount Gambier has remained stable which in our view is positive for the region. One thing that has surprised us this year is the continued strength in the rural and rural residential market. Sale prices of rural lifestyle and rural properties have exceeded expectations on a number of occasions. We expect further surprises could continue in this sector into 2020.