Regional SA November 2017

The month in review: Regional SA

By Herron Todd White
November 2017

Mount Gambier Property Update

In the Mount Gambier region there are a number of major tenant groups, including students, itinerant workers and professionals. Students generally rent as they are not ready to enter the housing market or their income does not allow it. Teachers and other professionals also make up a large portion of the rental market as many take up yearly contracts in the region and only require a rental property. The university and James Morrison Music Academy have created a larger uptake in rental properties in recent times.

There is not really one particular rental centre for detached housing in Mount Gambier however proximity to the hospital, schools and city centre prove to be popular positions. Rental properties can be found throughout the whole of the town. In recent years there has been an increase in of out of town investors building new detached houses on the outer edge of town to rent out.

Drivers for tenant demand vary from tenant to tenant. Some of the main drivers for detached housing in Mount Gambier include number of bedrooms, number of bathrooms, affordability and proximity to schools, transport, place of work etc.

For a standard 3-bedroom, 1-bathroom detached dwelling in good condition, the rent may range from $220 to $350 depending on location, age, condition etc. Below are some examples of current rental properties within this range.

The cheapest rentals in Mount Gambier are generally properties located in Housing Trust areas or small houses located in less sought after locations. These properties, such as the one below, can be rented for as little as $195 per week.

In Mount Gambier it is not common for properties to achieve a rent of over $400 per week. For $400 per week the property will generally be a modern 4-bedroom, 2-bathroom dwelling with an al fresco or pergola area and situated in a good location, such as the property below.

The rent for units, flats and maisonettes varies, again depending on size, age, location etc. For a basic 1- to 2-bedroom flat the rent may range from $100 to $200 per week. For something a little more standard, the rent may range from $200 to $300 per week. Modern units can achieve a higher rent, ranging from approximately $300 to $350 per week. In Mount Gambier currently the highest rental achieved for a unit is $425 per week, however this unit is located in an apartment complex and has an outlook over the city.

Currently, supply and demand are relatively even for rental property with vacancy rates tending to decrease in recent years.