Regional SA April 2017

The month in review: Regional SA

By Herron Todd White
April 2017

Mount Gambier
Within the past 12 months, the highest number of sales has been occurring in the Mount Gambier property market within the $200,000 to $250,000 price range (refer to the graph below). A house within this range is generally of average or good quality, including 3- to 4-bedrooms, 1- to 2-bathrooms, a garage under the main roof and a pergola area, situated on approximately 600 to 800 square metres of land.

The price range of $200,000 to $250,000 is popular for owner-occupiers entering the market and for investors looking at a property that provides a stable rental return. Properties within this price range will typically have a gross return of 6% to 7%. Below are a number of sales depicting what you can get around this price point.

price

SA 1

A circa 1991, 3-bedroom, 1-bathroom dwelling with a single garage under the main roof and a pergola area. Land Area: 747 square metres. Good condition. 10 Saint Martins Drive – $245,000

SA2

A circa 2002, 3-bedroom, 1-bathroom dwelling with a single garage under the main roof and a pergola area. Land Area: 621 square metres. Good condition.

graph 1

The graph above shows that sales volumes for houses have been increasing slightly since 2011 and from 2014 to 2016 sales volumes have increased more than they did over the previous three-year period. This level of activity still seems sustainable, with agents advising there has been greater confidence in the market in the past nine to ten months. For the first two months of 2017 there have been 80 sales. If the calendar year continues like this, then by the end of the year approximately 480 sales will have occurred, which will be slightly higher than 2016.

SA2

The above graph shows that unit sales have been increasing significantly over the past two years, with 2016 sales nearly double what they were in 2014. It does appear unit sale numbers are above averages of recent years, and with low interest rates and good yields we believe this activity will be sustainable whilst these factors are present. For the first two months of 2017 there have been 16 sales. If the calendar year continues like this then by the end of the year approximately 96 sales will have occurred, which will be similar to sales volumes in 2016. Currently, there is also good demand for well-located properties that have renovation potential. On the other hand, neglected properties located in less desirable areas can be difficult to sell and often have extended selling periods.

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.