IT’S no more than a dugout with water and power supply, but this Coober Pedy property has buyers lining up at the door.
Listed with a bargain price tag of just $18,000 –1880 Hallion St is South Australia’s most affordable home for sale on realestate.com.au – and buyers have taken note.
After just six weeks on the market and multiple offers, the underground home – which includes two partially dug rooms and a large veranda on a 1220sqm block – is expected to sell to an interstate buyer next week, after he put forward an offer too good to refuse.
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An impressive result, according to selling agent Trevor Lambert of Your Price Real Estate Gawler who said the property offered plenty of scope for further development.
“The property is now under offer and expected to sell to an interstate buyer next week who made an offer above the asking price,” he said.
“It’s someone who is looking to move to Coober Pedy and getting the property done up to live in.
“The property does need a bit of work and currently has no septic installed – that’s why the asking price was so low – it reflects the work that needs to be done.
“In terms of further development, the new owner can go down six feet and, from what I’ve been told, could turn the dugout into a three-bedroom home.”
With around 30 per cent of locals living in dugouts, Mr Lambert said underground homes were hot commodity among buyers, especially since the town’s recent mining upswing.
He said dugouts could fetch between $50,000 and $300,000, depending on their setup, while the average above-ground home sold for around $60,000, according to CoreLogic.
They also made for valuable investments with the average home returning a 16.5 per cent rental yield at $190 a week.
“While we don’t sell as many homes in summer, we’ve definitely noticed an increase in buyer activity and inquiries, especially for dugouts,” Mr Lambert said.
“They are more economical than normal homes.
“Only last week we had 47C out here but it was only 22C in the dugouts – that’s why they are so popular.”