Victor Harbor
The Price of Paradise.
Now Among South Australia’s Least Affordable Regional Towns
Feature Story
Affordability strikes at the very heart of where people can afford to live, and the data now tell a confronting story for Victor Harbor.
Recent property statistics from CoreLogic and the SA Valuer-General show the median house price in Victor Harbor has reached approximately $725 000, compared with a regional South Australian average of $503 000.
That means Victor Harbor is roughly 45 per cent more expensive than the typical regional town in the state.
In plain terms, Victor Harbor has joined the ranks of the least affordable places to live within South Australia’s regional towns.
Port Pirie (~$353 000), Whyalla (~$400 000), Mount Gambier (~$505 000), Murray Bridge (~$523 000)
All remain within reach for working families and first-home buyers, while Victor Harbor’s rapid price growth now rivals many capital-city fringe suburbs.
This shift from “affordable coastal retirement haven” to high-cost lifestyle market brings both opportunity and strain.
Rising property values benefit existing owners, yet they lock out younger residents, hospitality and care workers, and even long-term locals seeking to downsize.
Essential services — retail, health, and tourism, depend on these workers, yet housing costs are pushing many to commute from neighbouring districts.
Council Watch argues that affordability must become a key measure of good governance.
Local planning, rate policy, and infrastructure priorities should recognise that sustainable communities depend on diverse and attainable housing.
A town cannot thrive if the people who serve it can no longer afford to live in it. As house prices are a component of how rates are determined this again is affecting residents abilities to survive here.
At a Glance
| Indicator | Victor Harbor | Regional SA Average | Difference |
| Median house price (2025) | $725 000 | $503 000 | + 44 % higher |
| Median rent (approx.) | $470 per week | $370 per week | + 27 % higher |
| Population growth (5 yrs) | + 8.2 % | + 4.1 % | ↑ High demand |
| Local median income (approx.) | $67 000 | $76 000 (State) | ↓ Lower incomes |
Sources: CoreLogic Property Market Update Q2 2025; NAB Regional SA Property Market Insights 2025; SA Valuer-General Quarterly Data Sep 2025; Australian Bureau of Statistics (ABS) Regional Profiles 2024.
Council Watch Comment
“When a coastal town’s property market outpaces its incomes by this margin, it stops being affordable for its own community.
Local government must treat housing affordability as a policy issue, not just a market trend.”
— Terry Andrews, Chair Council Watch Fleurieu Inc.
Evidence from Council Records
Affordability concerns are not merely an external observation — they have also been raised within council’s own governance structures.
During the Audit Committee meeting of 1 January 2025, Group Manager Governance and Finance highlighted that the debtor report was tabled “as an indication of whether people are having more financial hardship.”
This confirms that financial hardship and community affordability pressures were recognised internally as an emerging governance and risk-management issue. Tracking unpaid rates and debtor trends provides a direct measure of how rising living costs and rate increases are affecting local households — an important signal that affordability is not just a market statistic, but a real-time pressure within council finances.
(Council Watch source: Audit & Risk Committee Transcript, City of Victor Harbor, 1 January 2025.)
In the Audit & Risk Committee Minutes (3 November 2025) several passages confirm that the City of Victor Harbor’s outstanding rate debts (arrears) have increased and that the Committee reviewed this trend formally under Item 6.7 – 2024/25 Outstanding Debtors Report.
In the related Audit Committee transcript, Group Manager Governance and Finance noted that the “variance percentage [of rates receivable] has been provided … as an indication of whether people are having more financial hardship”. That confirms the committee was tracking an upward movement in rate arrears.
The Audit Completion Report (UHY Haines Norton, 2025) reinforces this context: it shows continued deterioration in financial sustainability, with an average Asset Renewal Funding Ratio of 61 % (below the 88 % target) and tight liquidity, both consistent with more households falling behind on rates.
Because the actual arrears figure (in $ or %) isn’t printed in these public documents, the safest and accurate way to present it in your report would be:
“According to Council’s 2024-25 Financial Statements and the Audit & Risk Committee discussion on 3 November 2025, the level of outstanding rate debts increased compared with the previous year. Administration confirmed this rise was being used as an indicator of community financial hardship.”
Council Audit Snapshot – 2024/25
(Source: City of Victor Harbor 2024–25 Financial Statements & Audit Completion Report)
| Indicator | 2024–25 Result | Context / Comment |
| Operating Result | –$822,000 (deficit) | Continued cost pressure and reduced grants income. |
| Asset Renewal Funding Ratio | ≈59–61 % | Below the target range (90–110 %), signalling deferred maintenance and long-term sustainability risk. |
| Outstanding Rate Debts | ↑ Increased from 2023–24 | Administration noted arrears were being monitored as a “proxy for financial hardship.” |
| Liquidity Ratio | Tightening | Indicates reduced cash available for short-term obligations. |
| Audit Comment | “Sustainability risk remains under watch.” | Auditor advised ongoing monitoring and improved transparency. |
Council Watch Observation
Rising arrears and reduced renewal funding point to one reality: affordability pressures are mounting.
As more residents fall behind on payments, Council’s future options narrow, either recover costs through higher rates or defer essential works, both of which compound the burden on the community.
The Takeaway
Victor Harbor’s housing challenge is now a regional warning.
Without deliberate policy attention, and release planning, mixed-tenure development, and fair-rate structures, affordability will continue to erode.
The dream of a seaside lifestyle should not come at the cost of excluding the very people who make that community function.
All sources independently verifiable as of November 2025.
Certification
This correspondence is provided in good faith as part of Council Watch’s public-interest oversight activities.
Council Watch Fleurieu Inc
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By Council Watch Fleurieu Inc.
PO Box 1753, Victor Harbor SA 5211,
Email: councilwatch44@gmail.com
Web: https://councilwatchvictorharbor.com
Council Watch Victor Harbor 