Mount Gambier housing market to remain stable throughout 2020: HTW residential
The outlook for 2020 for Mount Gambier is that the housing market will remain stable throughout the year, according to a recent Herron Todd White (HTW) residential report.
"We are not aware of any obvious indicators that will have a significant impact on the local economy and the property sector," the valuation firm said.
As seen in the graph below, house sales for 2019 were at similar levels to where they have been since 2014 and it is expected that this trend will continue throughout 2020.
The report notes 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.
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Source: HTW
The graph below shows the number of houses sold within the $400,000 to $500,000 price range for the past 10 years.
There was a significant drop between 2010 and 2011 when the market declined, 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 10 years. This may be something to watch this year to see whether sales within this range continue to increase or we start to see a few more house sales above $500,000.
A three bedroom house in Mount Gambier was sold for $465,000 in December last year.
Situated at 49 Bertha Street (pictured below), the house comes with open living area, kitchen, pergola and heated swimming pool.
Other features include double garage, rear courtyard and ceiling fans.
Click here to enlarge:
Source: HTW
"The $200,000 to $300,000 price range is affordable and it’s where the most number of sales occurs," the valuation firm said.
A house in this range appeals to families and first home buyers and are generally of good quality, including three or four bedrooms, one or two bathrooms, a garage and a pergola area, situated on 600 to 800 square metres.
This is affordable compared to other cities such as Adelaide, where $250,000 to $300,000 will generally get you a small two-bedroom, one- bathroom unit or house situated on a small allotment of around 200 square metres.
A Mount Gambier stone house on a 1,351sqm allotment has hit the market with $285,000 hopes.
The four bedroom, two bathroom house is situated at 9 Duigan Street (pictured below).
It features renovated kitchen/meals, dining area, rumpus room and established garden.
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 that decreases in employment will impact negatively on the property market in these regions.
"Overall, we are expecting this year to be similar to last year with no major fluctuations in the local market," the valuation firm said.
