As Aussies around the country grapple with rising interest rates, unaffordable properties and a rental crisis, 11 properties recently sold in one South Australian town for as little as $16,000.
For figures that wouldn’t even add up to a deposit in the country’s capital cities, buyers snapped up the properties in the opal mining town of Coober Pedy.
The properties went under the hammer by the district council, in a bid to recoup years of unpaid rates.
They included vacant blocks of land, dugouts (underground homes built to escape the brutal heat), three-bedroom houses and commercial premises. The condition of the properties varied, with some needing significant work.
Despite the distance – Coober Pedy is a nine-hour drive north of Adelaide – the auctions sparked national interest.
While most of the 11 properties were bought by locals, Council CEO David Kelly said some were snapped up by investors from Sydney.
“It’s a unique town,” Mr Kelly said. “It’s got a nice community. The cost of living is low, especially for houses.”
While the town has a population of just under 2000, it is a popular tourist destination as it’s situated on the Stuart Highway, on the edge of the Great Victoria Desert.
“At the peak of the tourism season, there’s often a lack of property, so it’s a pretty good investment for at least six months of the year,” Mr Kelly said.
It has also become popular with the film industry, used as a backdrop for films such as Mad Max Beyond Thunderdome, Kangaroo Jack and a 2021 film adaptation of Mortal Kombat.
And the town has also recently featured as the set of the Fox US reality show, Stars On Mars. where celebrities are put into a simulation of what it might be like as an astronaut on the Red Planet.
A total of 16 properties were due to be sold in the auction, however five were withdrawn from sale after their owners agreed to repay what was owed through payment plans.
The cheapest property to sell was a vacant 967sq m block with bidding starting at just $5000 and selling for $16,000.
Meanwhile, the cheapest house sold for $33,500.
Various dugouts sold for between $25,000 and $65,000.
The most expensive property to sell was a commercial property, going for $250,000.
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A council spokesperson confirmed the council recouped all its outstanding rates from the sales, making a total of $504,000.
When the auctions were first announced, Warren Andrews from Andrews Property said the council’s move to sell the properties was an “extreme last resort”.
“They’re properties the council has got significant arrears on,” he said. “The council don’t take these things lightly.”
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