Mount Gambier in SA offers better property value for $500,000 than other regional areas: HTW

Mount Gambier in SA offers better property value for $500,000 than other regional areas: HTW
Mount Gambier in SA offers better property value for $500,000 than other regional areas: HTW

In the Mount Gambier area in the south east of South Australia, $500,000 provides an opportunity to purchase a property within most areas, say valuation firm Herron Todd White in their July 2016 residential market report.

Few dwellings sell for more than $500,000 and demand for property tends to reduce significantly when the market value is greater than $500,000. Properties in this market range typically are owner occupied and are not transferred on the market often, with only eight sales occurring since the beginning of 2015.

"When compared to other regional areas and cities, $500,000 in Mount Gambier is good value for money. This figure will generally get you a modern four-bedroom, two-bathroom residential dwelling situated on a large allotment, similar to the property below," write HTW in their report. 

A property such as the one below at 14 Buffalo Cresent will provide a good quality fit-out with above average fixtures and features.

Mount Gambier in SA offers better property value for 0,000 than other regional areas: HTW  

A 2016, four-bedroom, two-bathroom modern dwelling on an 837 square metre allotment located in a modern residential division with good quality houses surrounding it.

At $500,000 the best performing property is typically a centrally located character dwelling situated on a generous size allotment, similar to the recent sale below. These properties are tightly held and few transact on the market each year.

Mount Gambier in SA offers better property value for 0,000 than other regional areas: HTW

A circa 1925, four-bedroom, two-bathroom, renovated character dwelling on a 1,161 square metre allotment, located in a sought after area surrounded by similar quality homes.

The price point of $500,000 for an investment property in Mount Gambier is quite high. In that particular price bracket an investor could purchase just about anywhere in town and get a rental return of approximately $400 a week for a 3- to 4-bedroom dwelling. There is a price limit that properties tend to be rented for, which does limit the return that can be achieved from higher value properties.

"In our opinion, the money would be best used to purchase two modern residential units which are centrally located within the town as opposed to a house. Most modern residential units sell for between $200,000 and $300,000 and they would generate a rental return of approximately $250 to $300 each per week, which provides a greater percentage return then if an investor were to purchase only one higher valued dwelling."

Outside Mount Gambier, an investment property may be a modern dwelling on the coast which could also be rented out as short term holiday accommodation. Houses that have sold around $500,000 in coastal towns within the region generally include coastal views.

 Mount Gambier in SA offers better property value for 0,000 than other regional areas: HTW

A 2009, 4-bedroom, 2-bathroom two storey dwelling on a 645 square metre allotment, located on the beach front esplanade and surrounded by good quality houses.

Mount Gambier in SA offers better property value for 0,000 than other regional areas: HTW

A circa 1970, 3-bedroom, 2-bathroom two storey dwelling on a 1,043 square metre allotment, located on the Esplanade with good ocean views. As seen in the graph below, not many units reach higher than $350,000. The most common price range for a unit in Mount Gambier is $150,000 to $199,000 and most modern units generally range between $200,000 and $300,000.

Mount Gambier in SA offers better property value for 0,000 than other regional areas: HTW

"With a price point of $500,000 there is likely to be little growth within the next few years. The region has seen little growth in recent years and that trend is likely to continue until significant employment and population growth is seen in the area. This price would generate a good rental return however the value of the property is unlikely to increase in the short term," HTW concludes.

 

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Residential Market

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