Taylor Swift’s tick of approval, a hit reality TV show, and the possibility of unearthing a fortune - it’s the recipe for a real estate windfall that’s seeing a remote opal town experience property price momentum.
When it comes to mining towns, Australia has plenty of heavy hitters that have travelled the highs and lows of the resources roller coaster, but there are a handful of hidden gems currently shining during the recent turbulence for iron ore prices.
Coober Pedy in South Australia and Lightning Ridge in NSW have long been known for their opal deposits but the tyranny of distance and lack of vital amenities have kept a lid on both population numbers and housing values.
Now, however, as the precious stone is back in fashion and these remote towns gain better infrastructure, locals say there’s a bright future ahead.
Opals under the spotlight
In December 2023, pop megastar Taylor Swift was gifted an opal ring for her 34th birthday - which happens to be boyfriend Travis Kelce’s birthstone.
“When I was bullied in school, my mom used to take me to T.J. Maxx after school to look at the opal jewellery,” she told Us Weekly in 2017. “I thought opals were so beautiful, and somehow it made me feel better.”
The trendsetter has been snapped wearing earrings with opals, the astrological gemstone of Venus believed to promote healthier relationships and increase creative potential.
Taylor Swift's opal ring has been making waves since last year. Picture: Taylor Swift/Instagram
Given Australia is home to roughly 95% of the world’s opal deposits, it’s no surprise a gem-related TV show popped up down under.
The smash hit, Outback Opal Hunters, ran for nine series in more than 100 countries.
“That program has generated a huge amount of interest and attracted tourists from all over,” said Misty Mance, Coober Pedy-based agent from Andrews Property.
Unearthing the value of Coober Pedy
Opals were discovered in Coober Pedy in 1915 and since then the remote South Australian destination 850km north of Adelaide has been known as the “Opal Capital of the World”.
Opals were discovered in Coober Pedy in 1915. Picture: Getty
The town of just under 1,500 inhabitants is also famous for another rare subterranean feature – 60% of its houses are underground.
“Dugouts save hugely on running costs because they stay about 23 or 24 degrees all year round. An above-ground house can be fantastic, but you need great insulation and you rely heavily on air conditioning,” Ms Mance said.
“For a lot of tourists, it’s an adventure to live this way. They want that experience whether it's for one day or a couple of weeks.”
The unique lifestyle hasn’t hurt property prices with the median 12-month dwelling value rising 29.7% to $103,750, according to PropTrack.
Currently, more than 70 Coober Pedy properties are listed on realestate.com.au between $50,000 and $450,000 with vacant residential blocks from $15,000.
“For the past couple of years, the market has been very fluid. There's been movement and there haven't been any flat spots,” Ms Mance added.
“We’re quite a seasonal town so from March or April through to October or November, depending on the year, it’s a busy time due to the cooler weather.
“We've got miners here year-round, some come for six months, some for five years - others stay a few weeks and say ‘I'm out here, it's too small and too dusty!’”
The home at Lot 101 Kami Road, Coober Pedy is on the market for $215,000. Picture: realestate.com.au/buy
Due to the transient population and steady tourist trade, Ms Mance said the rental demand remains strong, feeding the rest of the market.
“You need strength in a rental market to have a good sales market. We also have some of the cheapest housing prices in Australia, which is a drawcard too.”
Low-cost real estate can often be attributed to few employment options and limited amenities, however, Coober Pedy’s landscape is changing.
The town is about to gain a $970,000 renal clinic; Telstra is laying the groundwork for a 5G network; and last year BHP opened a copper mine at Prominent Hill 137km away.
The Lot 101 Kami Road home is a four-bedroom dugout with natural sandstone patterns. Picture: realestate.com.au/buy
“We've got a beautiful laidback lifestyle, great weather and some interesting things to see and do. If you get tired of town, there’s now a bitumen road which takes you in all directions.”
An alternative lifestyle in Lightning Ridge
In NSW, 722km northwest of Sydney, another opal hot spot, Lightning Ridge, offers buyers a lifestyle change or gem-related investment opportunity.
“Rentals and sales have definitely picked up in recent months,” said Claudia Turner of Kelly’s Property Sales.
With minimal Lightning Ridge sales during the past 12 months, PropTrack does not have the volume to generate an annual median, however realestate.com.au has recorded numerous sales between $155,000 and $440,000.
Opal mining town Lightning Ridge is located 722km northwest of Sydney. Picture: Getty
“They’re building a new opal and fossil centre in Lightning Ridge which seems to be attracting a lot of buzz. Then there are a few older residents selling so properties are coming up as they move on,” Ms Turner explained.
The Australian Opal Centre, a multimillion-dollar two-storey underground venue designed by Glenn Murcutt and Wendy Lewin, will see its first stage open later this year. Additional tourist attractions include the therapeutic Artesian Bore Bath and the Chambers of the Black Hand underground sculpture gallery.
Property investors have a choice in town with classic freestanding houses, or on the outskirts of Lightning Ridge with Tooheld under Western Lands leases.
This three-bedroom home at 26 Butterfly Avenue in Lightning Ridge is seeking offers of $320,000. Picture: realestate.com.au/buy
Also known as camps, the sites are typically used for agriculture, but also businesses and residences with some selling for as little as $20,000.
“The leases are for a variety of periods and they generally roll on and get renewed, but that does make a difference to price. Obviously, the simple freehold is more expensive,” said Dianne Kelly, also of Kelly’s Property Sales.
“They’re often 50x50m blocks on the edge of the town with no connected water or electricity, some have a flush toilet and others just have a long drop. There are no bitumen roads and they rely on solar or a generator and rainwater. It’s all about cheap living off the grid and although some don’t look like much from the outside, they can be incredible inside.”
As tourism grows, so does the short-term investor demand, added Ms Turner.
“A lot of people are buying these camps and turning them into Airbnbs because there are so many visitors coming into town, especially in the cooler months.”
Mining market cycles
Past investors in mining towns have taken significant financial blows with some owners seeing values drop up to 50% after the previous mining boom-to-bust period in the mid-2010s.
Australia is home to roughly 95% of the world’s opal deposits. Picture: Getty
PropTrack economist Anne Flaherty said investors looking at small towns known for one-off resources should proceed with caution.
“Mining areas are known for their volatility. When there's a high demand for a certain resource, we see a rapid increase in house prices and rents," she said.
"Anyone investing in a mining area needs to have a higher risk tolerance. Yes, you might see incredible growth, but you might also see property prices decline significantly depending on broader economic trends.”
Ms Flaherty said the type of resources can play a big role in local real estate values.
Opals are coming back into fashion. Picture: Getty
“The drivers for one resource aren’t necessarily the same as the drivers of another. In the case of gems, they aren’t being used in building and construction or infrastructure and technology so their demand is going to be very different to, say, iron,” she said.
She added that tourism can be an investor’s safety net in a cycle trough but stressed not all mining towns have the same appeal.
“If the local mining sector is not as strong as it was, then maybe an investor can pivot towards Airbnb instead," she said.
"Areas like Coober Pedy and Lightning Ridge are on people's radars but not all mining areas have that appeal.
"Some are in outback areas with not much around, they’re hot and dusty and difficult to reach. If you were to see a downturn in demand from the mining sector in those specific areas, there's a much higher chance those properties are going to fall vacant and therefore values decline.”
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