The future looks bright for Port Lincoln: Terry Ryder

I’ve been touting the good solid prospects of Port Lincoln in South Australia for the past 2-3 years.  

It’s the sort of place I regard as heartland Australia. While all the political and economic focus rests on the big mines and the big cities, the farmers, fishermen and fibro dwellers in places like Port Lincoln are getting on with the business that keeps the national fires burning.  

It’s growing, it’s affordable and there are identifiable drivers of future capital gains.  

So it was gratifying – momentarily - to see the high level of growth reported in the latest Market Facts report from the Real Estate Institute of Australia. It records a 24% annual rise in the median house price and a 10% rise in the median unit price.  

But I wasn’t celebrating too hard, because I know how misleading statistics can be. As I so often tell readers, it pays not to place too much emphasis on one set of numbers, because another research source may tell a different story.  

Australian Property Monitors also records growth in Port Lincoln’s median house price, but nowhere near as high. APM says the Port Lincoln median has risen 8% in 12 months, helped by a 9% jump in the March Quarter. So a big difference in the numbers from the two sources, but both tell a story of growth.  

On the other hand, RP Data’s figures suggest no growth at all in the Port Lincoln median house price over the past 12 months, despite a 4% increase in the most recent quarter.  

To add to the confusion, there is wide disparity on price levels. The REIA says the median house price in Port Lincoln is $320,000, APM says $300,000 and RP Data reports $285,000.  

All we can tell you with certainty is that Port Lincoln is a key regional centre for South Australia’s Eyre Peninsula, a region which is assuming growing economic importance as mining ventures and associated infrastructure develop. Approval for an export port near Port Lincoln to service the emerging resources industry is a key event, as is the development of the town’s aquaculture industry.  

Port Lincoln markets itself as the seafood capital of Australia. Like most claims of this nature, there’s a degree of exaggeration and some element of truth. Port Lincoln is undoubtedly renowned for its fishing. The fishing industry is a cornerstone of the local economy, notably for tuna, rock lobster, prawns and whiting. The city claims to have Australia’s largest commercial fishing fleet.  

Other significant factors in the local economy include the huge grain-handling silos which have a total capacity of 340,000 tonnes, as well as canning and fish-processing plants, sheep and cattle. Port Lincoln has a natural deepwater harbour that makes it attractive to large bulk grain carriers.  

The Port Lincoln region has a significant wine industry and tourism is another key component of the local economy. The town is located near 60,000 hectares of national parks and 250 bird species have been recorded in the area.  

The gradual emergence of iron ore mining on the peninsula promises to add another major element. These are not the mega projects that happen in Western Australia but there are several of them and they entail thousands of jobs and the prospects of the first new port in South Australia to allow direct loading for Cape-size vessels.  

Oil exploration in the Great Australian Bight by BP and others may in time bring more economic activity to the region.  

All of that has inspired plans for some big property developments, including a $300 million mixed-use projects with homes, commercial elements and a new base for the local fishing fleet.  

So, regardless of which set of statistics correctly describes the current market in Port Lincoln, I feel confident there’s plenty of growth to come.  

Terry Ryder is the founder of hotspotting.com.au