Coober Pedy properties offering insane 15% rental yield

Coober Pedy is renowned for its opal mining but new data reveals it’s also a property gold mine.

The outback town not only has some of the cheapest homes in the country but its rent returns are among the highest too.

Its rental yield is sitting at 15.43 per cent – the strongest in the state by far, with the next closest being 10.26 per cent at Port Pirie West, and the third highest in the country, according to latest PropTrack data.

By comparison, Greater Adelaide’s rental yield for houses is 3.71 per cent and 4.48 per cent for units.

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Coober Pedy’s rental yield is more than 15 per cent, latest PropTrack data shows. Image: Hipcamp.

Andrews Property director Warren Andrews, who has an office in Coober Pedy, said there were several factors that made rent returns so high.

“One, the actual purchase price of property is very cheap – we’re not talking massive sums of money to get into the market,” he said.

“And like most areas, housing is under pressure, rentals are under pressure in Coober Pedy.

“We’ve seen rents rise fairly consistently, and in some cases dramatically, over the last two years.

“The available pool of rental accommodation is quite shallow too.”

According to PropTrack data, Coober Pedy’s median house price is $77,500.

With a diverse range of properties above and below ground on offer in the “niche market”, Mr Andrews said prospective buyers had plenty of options, many of which were well under $100,000.

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The property at Lot 400 Medway Drive is on the market for $39,000.

“I’d challenge them to find that anywhere else in Australia,” he said.

“It’s good, affordable, entry-level housing.”

Coupled with the rental yield, Mr Andrews said Coober Pedy was attractive to buyers – both investors and those looking to live in the area for various reasons.

“Most of our buyers and investors are coming from Victoria at the moment,” he said.

Coober Pedy has some of the cheapest properties in the country, some of which are damaged or rundown.

Andrews Property’s Misty Mance said earlier this month after selling the vandalised property at Lot 527 Van Brugge St that they weren’t desirable to every buyer but were a great opportunity for some.

The property at Lot 527 Van Brugge St recently sold.

“It does give an opportunity for a first-home buyer or for others that can’t get into the market,’’ she said at the time.

“The condition of them doesn’t worry some people because it’s a chance to own their own home that they might not otherwise have.

“If those opportunities weren’t there, they may not have anywhere else to go.’’

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