Regional SA February 2018

The month in review: Regional SA

By Herron Todd White
February 2018

Mount Gambier

In Mount Gambier, the outlook for 2018 is for the housing market to remain stable throughout the year. We are not aware of any obvious indicators that will have a significant impact on the local economy and the property sector. As seen in the graph below, house sales for 2017 were at similar levels to where they have been since 2014 and it is expected that this will continue throughout 2018. The median housing price has increased slightly in recent years, however there is still a large supply of housing and land for sale which does impact on growth in the region.

Mount Gambier house sales

The graph below shows the number of house sales that sold within the $400,000 to $500,000 price range for the past ten years. There was a significant decrease between 2009 and 2011 when the market dropped back, however there has been a steady incline in sales since then, with sales within this range now the highest they have been in the past ten years. This may be something to watch this year to see if sales within this range continue to increase or if we start to see a few more house sales above $500,000.

Mount Gambier number of sales

The $200,000 to $250,000 price range is affordable and it’s where the most number of sales are occurring. A house within this range appeals to families and first home buyers and is generally of good quality, includes 3- to 4-bedrooms, 1- to 2-bathrooms, a garage and a pergola area and is situated on 600 to 800 square metres. This is affordable compared to other cities such as Adelaide, where $250,000 will generally get you a small 2-bedroom, 1-bathroom unit or house situated on a small allotment of around 200 square metres.

Small regional towns are heavily reliant on a small number of industries. These towns should therefore be treated with caution as they are dependent on local employment. History has shown in these regions that decreases in employment will impact negatively on the property market.

Overall, we are expecting this year to be relatively similar to last year with no major fluctuations in the local market.

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