Regional SA Property Market Update December 2020

Mount Gambier Property Update

Our predictions at the start of 2020 were for a stable market with a similar number of sales occurring as 2019 and a continued slight increase in the median house price. Even with COVID-19 deciding to show up, our predictions were very close to these two targets.

One of the main changes to the Mount Gambier property market for 2020 was an increase in demand for housing and a reduced supply of stock. This was not predicted as the Mount Gambier region has historically seen an oversupply of housing.

Agents are positive about the current market with many sales occurring prior to listing, going to highest and best offers and achieving above listing price. Listing periods have decreased and purchasers are having less negotiating power with the stronger market factors. This has not been a typical occurrence in our local market however with supply dropping off and demand increasing, it really has led to a more active market.

Agents are reporting that out of town buyers relocating to a regional lifestyle and investors seeking our strong yields are factors in the stronger performance. The government construction stimulus has seen land sales increase drastically over the past four to five months of the year, however we expect this to slow down with the grant nearing completion and builders unable to take on much more work; many builders are booked out for the next 12 to 24 months.

An interesting point to note about 2020 is that a certain price point has been much more active than others. Houses above $500,000 have usually been less active with few sales occurring each year – 2019 achieved 13, 2018 achieved 11 – however 2020 has so far achieved 22 sales above $500,000 with a number of properties currently under contract over $500,000. This is a positive for the local market and we expect this trend to continue.

Adrian Castle
Certified Practising Valuer