Ceduna is the only town on the Hotspotting list which focuses on towns to benefit from the mining boom but not totally depend on mining. Ceduna, which also has agriculture, aquaculture, tourism and fishing, is the only South Australian town on the list.

“While investors who get in early can make big capital gains, most mining towns exist in a bubble which can burst if demand for resources drops, the local mine closes or housing demand falls away after construction of a major project is completed,” Hotspotting director Terry Ryder said.

“Property buyers looking for boom town investments are better served looking for nearby regional centres that will enjoy the economic surge of major new projects, but are not solely dependent on it for their prosperity.”

Kirsty Lewis from Reg Kemp Real Estate in Ceduna said prices did slump in the town at the start of the year because of uncertainty over the global financial crisis but this has now passed.

“Sales went down 6 per cent but there was probably more of a price realignment,” Mrs Lewis said.

“This year’s been a steady increase in prices. We’re going beyond what Ceduna peaked at and we’re forging ahead. We’re getting a lot of interest from investors.”

Seventeen blocks at Ceduna Waters have now been settled – all of them seafront – with more still available. “Every day we’re getting more across the line so it’s a continual process from now on… Locals have really taken it on board,” Mrs Lewis said.

“There’s been quite a few in 30 to 40 age group looking to build their dream home with a sea view… They’re half the price of others with a sea view so it’s a great opportunity for younger and older people too.”

Alana Norwood settled lot 40 with partner Brett Collins on October 23.

“The seafront basically was what we wanted and there’s nowhere else in Ceduna to get a seafront block at that price,” Miss Norwood said.