Now that we’re a few months into the new financial year, it’s a good time to reflect on how Mount Gambier’s property market fared over the last quarter. In this article, we’ll walk you through the sales and rental activity and trends for the June 2023 quarter.
Mount Gambier’s property prices have risen in the past five years across sales and rentals. The growth has been consistent: in 2019, the median house sale price was $255 000, growing slightly to $260 000 in 2020. From here, the climb accelerated: in 2021, the median was $280 000, and from here, the figure kept climbing, hitting $330 000 in 2022. As of 31 May 2023, the median house sale price in Mount Gambier is $375 550.
Rental prices have followed a similar pattern, with weekly rents climbing consistently from $300 in 2021 to $345 in 2022 and $383 in 2023.
The upswing correlates to Mount Gambier’s steady population growth. Currently, the population of Mount Gambier is approximately 26 800, making it the second largest city in South Australia. Due to its prime position halfway between Adelaide and Melbourne, good schools, natural beauty, great amenities, and thriving industries, the area has seen a wave of interstate migration over the past few years.
This growth has a profound effect on the housing market. According to realestateinvestar.com.au, Mount Gambier has a current rental vacancy rate of 0.68%. Put simply, there’s more demand for houses than there is supply, which pushes rental and sales prices up.
Let’s look at the actual figures for the June 2023 quarter:
In the past 12 months, up to May 2023, 493 houses and 107 units were sold in Mount Gambier. On average, homes spent 42 days on the market, and units 39 days, before selling.
At the end of the March quarter, the median sale price of houses in Mount Gambier was $375 550. This figure dipped slightly in April to $375 000 but regained its position of $375 550 by the end of May 2023. According to realestate.com.au, the median sale price for a two-bedroom house is $340 000; three-bedroom is $357 000; and four-bedroom is $510 000. While June figures aren’t available yet, Your Investment Property states that quarterly growth is 0.15% and 12-month growth is 13.8%.
At the end of the previous (March) quarter, the median price of units in Mount Gambier was $265 000. This figure grew to $267 550 in April, closing at $279 000 at the end of May, giving a quarterly growth of 7.31% and a 12-month growth of 32.86%. Not bad. The median sale price for a two-bedroom unit is currently $242 000 and three-bedroom $399 000.
As of 31 July 2023, the weekly median rent in Mount Gambier was $382 per week for houses and $275 per week for units. The gross rental yield (i.e., the total revenue a property generates before taxes or expenses are taken into account) is 5.24% for houses and 5.80% for units.
What does this mean for homeowners and investors?
Overall, Mount Gambier’s property growth is positive and consistent. As the population continues to increase, it’s likely that property prices will too. In June, a new report by hotspotting.com.au rated Mount Gambier as “one of the best regional centres in South Australia for property investment due to its affordable housing, lifestyle opportunities and employment growth”.
Likewise, in June, smartinvestmentproperty.com.au included Mount Gambier in its new Smart Property Investment’s Fast 50 ranking for 2024 as one of the nation’s most promising investment markets. Rounding out the praise was InvestorKit, who named Mount Gambier one of the “five South Australian markets set to outperform in 2023”.
These predictions are encouraging for people looking to enter the Mount Gambier property market. If you’re interested in learning more and seeing what properties we have available, get in touch.