An outback town famous for its opal mines has sold 33 of its unique homes for less than $36,000 each in a furious bidding war.
Coober Pedy, a remote town 846km north of Adelaide, is known for its underground homes dubbed ‘dugouts’.
The highest selling dugout sold for $36,000, while the cheapest vacant lot fetched just $1,300.
Above ground homes didn’t go for much more, with the most expensive being snapped up for $43,000.
The highest selling dugout sold for $36,000, while the cheapest vacant lot fetched just $1,300
Coober Pedy, a remote town 846 km north of Adelaide, is known for its underground homes dubbed ‘dugouts’
Dugouts remain at a constant temperature, while surface buildings need air conditioning especially during the summer months, when temperatures often exceed 40C
‘A lot of these properties owed more in rates than what the property was worth,’ the council’s chief executive Dean Miller told the ABC.
The auction, which was attended by 70 people, was held over two days at the Desert Cave Hotel.
Mr Miller said bidding got ‘fierce’ with about 40 more people joining the auction online while out of town.
Of the 33 properties that sold, about half were vacant plots with potential to build a new home from scratch.
‘We’re happy with that because it means new people coming into the town, buying a block of land and building, or buying an existing house and renovating,’ Mr Miller said.
However, the new owners, many of them from out of town or even interstate, will need to spruce the homes up to live in comfort.
Mr Miller said the one and two-bedroom homes were ‘pretty basic’ but had potential for extensions, renovations or knock-down-rebuilds.
‘If you are an investor, you would get a decent return on your investment. In fact, probably a lot higher than you would in a city,’ he said.
City slickers with dreams of a desert holiday hideaway should stay tuned as another 20 homes are expected to be sold just as cheap later this year.
Of the 33 properties that sold, about half were vacant plots with potential to build a new home from scratch
Mr Miller said the one and two-bedroom homes were ‘pretty basic’ but had potential for extensions
The town is renowned for its below-ground residences, which were built because of the historic lack of building materials, flies and to combat extreme temperatures
The homes were auctioned off after their owners well drastically behind on their rates – some for 10 years – and the properties were repossessed.
Mr Miller said the auction paid back about 55 per cent of the outstanding debts, but went so cheap it was below expectations.
Coober Pedy, which has a population of about 2,500, is often referred to as the ‘opal capital of the world’ due to the quantity of precious stones that are mined there.
The town is renowned for its below-ground residences, which were built because of the historic lack of building materials, flies, and to combat extreme temperatures.
A standard three-bedroom cave home with lounge, kitchen, and bathroom can be excavated out of the rock in the hillside for a similar price to building a house on the surface.
Dugouts remain at a constant temperature, while surface buildings need air conditioning especially during the summer months, when temperatures often exceed 40C.