Regional SA Property Market Update April 2019
Mount Gambier Property Market
Within Mount Gambier, two of the most sought after locations are Bay Road and Ferrers Street. These are centrally located and property types here are mostly old character dwellings situated on large allotments. We would also consider the small coastal town of Robe to be one of our best locations, specifically those properties which feature an ocean view or are centrally located.
For those wishing to purchase a good quality property on Bay Road or Ferrers Street, they would be looking at a price range between $500,000 and $900,000. Within this price range, dwellings are of a high quality and are generally renovated character dwellings situated on large allotments, such as the recent sales below.
For those looking at purchasing a good quality property situated along the Robe Esplanade or with an ocean frontage with good ocean views, they would be looking at a price range of anywhere between $800,000 and $1.9 million. Properties within this price range will generally be on a good size residential allotment and have direct ocean views. $1.85 million is one of the highest prices paid for a property in Robe in recent years and is shown below. This is a large, modern, two-storey dwelling centrally located, situated on approximately 932 square metres with absolute beach frontage and ocean views
If you wanted to buy a cheap property on Bay Road or Ferrers Street, the price for absolute entry level may be between $250,000 and $350,000. These are highly sought-after locations though so they are tightly held. Within this price range dwellings are generally smaller, original dwellings situated on smaller allotments and are of an inferior quality to the champagne dwellings. These properties will require renovation works and extensive capital expenditure to bring to a high quality. The price for absolute entry level for properties situated along the Robe Esplanade may be approximately $400,000 to $500,000. However most of this price is for the value of the land, with the dwelling and site improvements not contributing a significant amount of value to the property. An example is shown below.
As mentioned above, some of the compromises for buying a beer budget property in these champagne locations could include the size of the allotment, the condition of the dwelling and site improvements, the overall quality of the improvements and even the property type. While buying at the bottom end may require some compromises, it still gives you the option of entry into the market within these champagne locations. If you’re buying at the bottom end of a champagne location, you’re buying in an area that has previously been known to grow in value and this may benefit your property in the future.
In Mount Gambier, there isn’t really much difference between buying a home and buying an investment property in these areas, whereas in Robe most properties are purchased as investment properties or holiday rentals.