Homes in the remote town of Roxby Downs, located over 500 kilometers from Adelaide, are taking an average of 286 days to sell, according to the latest data from PropTrack. This figure represents the longest duration for any area in South Australia, with the next highest being Coober Pedy at 173 days. Despite this lengthy time on the market, local real estate experts believe it does not indicate a decline in interest in the area.
The median house price in Roxby Downs has seen a slight decrease of 7.1 percent over the past year, now standing at 260,000 AUD. However, in the last five years, prices have increased by 13 percent, and the rental yield is considerably attractive at 7.6 percent, significantly higher than the Greater Adelaide average of 3.67 percent.
Factors Behind Extended Market Times
According to Craig Sumsion, principal of Raine and Horne Roxby Downs, two primary factors contribute to the extended time homes remain on the market. He noted that the town is a single-industry area, heavily reliant on the nearby BHP Olympic Dam Mine for its economic stability. “There are a lot of homes available, and we’re an isolated area,” Sumsion explained. “People need to want to live here to come here. Most residents have some connection to the mine site.”
Established in the late 1980s, Roxby Downs supports a transient population of around 4,000 residents. Many of these individuals are FIFO (fly in, fly out) workers, while others, seeking to return home to their families each night, choose to relocate to the town. Sumsion described Roxby Downs as a “young family town,” emphasizing its relaxed lifestyle and community amenities.
The town boasts impressive sporting facilities, with football clubs that have associated netball clubs and a leisure center featuring a swimming pool complex. “Generally, people will have lived here and rented here for some time,” Sumsion added.
Investment Potential Amid Long Sales Periods
Despite the lengthy days on the market, Sumsion remains optimistic about the local real estate landscape. He indicated that the rental yield makes investing in Roxby Downs worthwhile, particularly as approximately half of the local population rents. “I see the town as being quite stable; it’s going to be here for a long time,” he stated. “A lot of people who come here rent, and they always rent.”
Roxby Downs ranks fourth in South Australia for rental yield, with Coober Pedy leading the state at an impressive 16.77 percent. Warren Andrews, director of Andrews Property, noted that the combination of affordable properties and robust demand for rental accommodation has contributed to high rental returns in the region. “We’ve seen rents rise fairly consistently, and in some cases dramatically, over the last two years,” he explained. “The available pool of rental accommodation is quite shallow too.”
As Roxby Downs continues to evolve, the housing market reflects a unique blend of local economic factors and community dynamics. The extended days on market may present challenges, but they also offer potential opportunities for investors willing to navigate the area’s distinctive landscape.
