Why this $495,000 three-bedroom home in an amazing part of Australia has been on the market since 2012

Daily Mail​

25-05-2025

A unique property listing in the centre of South Australia 's Kangaroo Island has gained huge attention - but unfortunately for all the wrong reasons.
It's the real estate version of a jam-packed showbag, but nobody's taken a bite in more than a decade due to some very specific rules.
Situated at 36 Cook Street, Parndana this sprawling three-bedroom home comes with two adjoining blocks of land, a bustling general store, a takeaway café serving up food 'to die for,' a fuel station, and the only post office servicing the entire western half of the island.
And it could all be yours for an asking price of just $495,000.
Yes, that's right. Less than a tin shed would cost in one of Australia's capital cities, this home, with multiple business attached, is going for under half a million dollars, but the catch has been enough to scare off buyers since 2012.
Described by selling agent Lynne Savage of Kangaroo Island Real Estate as a 'gold mine', the property is in the heart of Parndana, a small but vital farming town.
'This isn't just a post office. It's the lifeblood of half the island,' Lynne told FEMAIL.
So why hasn't it sold? Turns out, it's the very thing that makes this property so crucial - the Australia Post license - that's also keeping it firmly stuck on the market.
According to Lynne, many prospective buyers are simply looking for a sea or tree-change and are attracted by the idea of a laid-back rural home.
However, when they learn that running the Post Office is a non-negotiable part of the deal, the sale falls flat.
'I have had a lot of inquiries over the last three years, probably 40 or more, from people interstate interested in buying it,' said Lynne.
'But the sticker is they want either the current owners to stay on and manage it, which they don't want to do, or they ask me if there would be people on Kangaroo Island wanting to manage that for them.'
Unfortunately for the current owners, who are now divorced and having to run the attached businesses seven days a week, it might be the location that's hindering potential buyers.
'It's just one of those very unique situations, if it were somewhere by the water, it would go like a flash.'
Lynne is referring to the fact that Parndana is landlocked and not as 'desirable' for young people and families.
Located approximately 20 minutes north and south of the closest beach, and a half-an-hour drive from the popular coastal town of Kingscote, it could very well be a big contributing factor.
'If it was somewhere with water, you would probably be up around $800,000,' Lynne said on the drastic price difference other smaller properties could reach with a sea-view.
As for an ideal buyer, Lynne said it could be a family who wants a lifestyle change and is committed to running the Post Office and store as a lucrative business.
'Houses on Kangaroo Island the size of that house, would be $495,000 just for the house, let alone the business opportunities as well,' she said.
Locally known as Davo's Deli, the business side of 36 Cook Street is more than just a shop - it stocks groceries, fresh produce, frozen meats, operates as an Elgas agency, and even has an Ampol fuel distribution license.
In a small town like Parndana, these businesses aren't just convenient, they're essential.
Adding to the intrigue, housing demand is booming in Kangaroo Island's western districts, and with Parndana being the only township servicing the region, a property like this one is incredibly rare.
Yet, even with the rising appeal of country living and the remote work boom, the post office stigma is hard to shake.
Australians love the romance of owning an old Post Office - just not the reality of running one.
Post offices across Australia have seen mixed fates.
A 2021 Deloitte Access Economics report ranked them as more trusted than the local school, bank, or even the library, but many are being closed or converted into homes.
With business obligations like this one – which Lynn said new buyers would require to go through full Post Office training if they were to operate it themselves - the extra workload and responsibilities have made it hard for buyers to commit.
The next owner won't just be buying a home, they'll be stepping into a central role in one of Australia's most beautiful, tight-knit island communities.
It's a lifestyle many dream about: quiet living, community connection, and running your own business.
Until someone does snap it up though, this Kangaroo Island gem will keep waiting - shelves fully stocked, coffee machine at the ready, and post piling up.