Roxby Downs has had a very poor year for property investment returns compared to the rest of SA, giving investors a capital gain of -22.07% to date .
Taking the average capital gain, or increase in median house value, Roxby Downs,5725 has racked up an average of -22.07% over the period. This ranks it number 4112th in the whole country for real estate investors looking at median house price increases.
LACK OF BUYER INTEREST may well be the reason that Roxby Downs is offering property investors an average of -6.50. This rate of discount on properties puts Suburb at number 14th in terms of most discounted suburbs in SA
At number 3445 in a list of fastest selling suburbs, Roxby Downs is in the bottom 10% of suburbs in Australia with an average of days on market 132.38 for properties listed there.
With the median price for a house in Roxby Downs being $226000 and the advertised rent reaching $220 the gross rental yield for property investors calculates out to be 5.06%
There’s one reason and one reason only why Roxby Downs is one of South Australia's best long-term performers for capital growth – and it’s called Olympic Dam.Full summary
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There’s one reason and one reason only why Roxby Downs is one of South Australia's best long-term performers for capital growth – and it’s called Olympic Dam.
Roxby Downs was purpose-built during 1987 and 1988 to service BHP Billiton’s Olympic Dam mine, which produces copper, uranium, silver and gold. The town’s population is around 4,500, with an average age of 29 years, plus a further 1,000 fly-in, fly-out shift workers.
The unique nature of the town is its blessing – and its curse. Its location effectively means there’s a captive audience for property, and a very healthy rental market with 5%-plus yields (according to RP Data) and a practically non-existent vacancy rate.
However, it also means that its fate is tied squarely to the fate of the mine. As an example, when demand for commodities from the mine fell during the GFC, median property values plummeted by over $20,000 – and have only recently stabilised following resolution of the controversial mining tax issues. Vacancy rates during that time also rocketed to well over 10%.
Expansion is what’s on the cards, too. BHP Billiton is proposing to turn Olympic Dam – already the world’s largest copper and uranium mine – into the world’s largest open-cut mine. Assuming this takes place, the future outlook of the town is very rosy indeed.
Investors, therefore, would be well advised to keep a weather eye on progress with the Olympic Dam expansion – as Roxby Downs could well revive its goldmine reputation if and when further development gets the green light.