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Broken Hill

NSW 2880LGA: City of Broken Hill

Investment Score

68

/100

AI Intelligence Summary

Broken Hill is a historic mining city in far western NSW, approximately 500km from Adelaide and 1,160km from Sydney. Once known as the 'Silver City' due to its rich mining heritage, the city has experienced population decline over recent decades as the mining industry has evolved. The community is characterized by a higher median age, significant Aboriginal and Torres Strait Islander population, and strong arts culture including the Pro Hart Gallery and Sculpture Symposium. Property prices remain well below NSW averages, with large residential blocks and older housing stock predominating. The city serves as a regional hub with Broken Hill Base Hospital, multiple schools, and the historic Royal Flying Doctor Service museum. Infrastructure includes regular air services to Adelaide and Sydney, though the market faces challenges from limited economic diversification and ongoing population decline. The property market is characterized by low transaction volumes, extended selling periods, and rental demand closely tied to mining industry employment levels.

Strengths

  • Rich mining heritage and cultural significance
  • Strong arts community with galleries and cultural events
  • Regional medical and education hub
  • Large residential blocks with space and privacy

Opportunities

  • Tourism development leveraging mining heritage
  • Arts and cultural tourism expansion
  • Renewable energy projects in surrounding region
  • Regional hub development for western NSW

Considerations

  • Declining population due to economic changes
  • Limited economic diversification beyond mining
  • Extended property selling periods
  • Water security infrastructure challenges

Property Market

Median House

$185K

+1.2% 1yr

Median Unit

$125K

+0.8% 1yr

Median Townhouse

$155K

Rent (House)

$185/wk

Rent (Unit)

$150/wk

Days on Market

85

Vacancy Rate

4.2%

Auction Clearance

45.0%

Price Growth

Type1 Year3 Year5 Year
House+1.2%+2.8%+8.5%
Unit+0.8%+2.1%+6.2%

Rental Yields

House Yield

5.2%

Unit Yield

6.1%

Townhouse Yield

5.5%

Investment Scorecard

Overall Investment Score68/100
Growth Potential62/100
Cashflow Score75/100
Risk Score (lower = safer)58/100
Affordability Index78/100

Demand/Supply Ratio: 0.80

Supply exceeds demand — favourable for buyers

Tax & Financial Intelligence

CPA-grade analysis for Broken Hill at median house price

Standard transfer
$4,645
First Home Buyer
Exempt

Save $4,645

Foreign buyer surcharge
$14,800

+8% surcharge

Annual rent income
$9,620

$185/wk

Interest (80% LVR @ 6.5%)
-$9,620
Other expenses (~2.5%)
-$4,625
Net rental position
-$4,625

Negatively geared

Tax benefit (39% MTR)
+$1,804

Reduces taxable income

After-tax holding cost
$2,821/yr

~$54/week

Based on 1.7% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$201,269
Capital gain
$10,699
After discount
$5,349
CGT payable
$2,086

10-Year Hold

Est. value
$218,968
Capital gain
$28,398
After discount
$14,199
CGT payable
$5,538

Investor Quick Summary

Entry cost (stamp duty)

$4,645

After-tax yield

3.17%

Weekly holding cost

$54/wk

10yr CGT (est.)

$5,538

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.

Demographics

Population

17,500

Median Age

45

Median Income

$58K

per annum

Family Households

62.0%

Professionals

32.0%

University Educated

18.0%

Unemployment

7.2%

Born Overseas

15.0%

Dwelling Mix

Houses: 82%Units: 15%Townhouses: 3%Total: 8,200

Lifestyle & Community

Walkability45/100
Public Transport3/10
Schools Rating6/10
Safety7/10
Family Friendly7/10
Cafes & Restaurants

15

Parks

8

Hospitals

1

Distance to CBD

1160.0 km

Nearest Station: Broken Hill Station

Regional lifestyle with access to cultural attractions, outdoor recreation, and community events, though with limited retail and dining compared to larger centers.

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Data sourced from multiple sources. Last updated 26 March 2026.

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