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Buyers priced out of Sydney’s property market are set to drive up real estate values in towns such as Bathurst, Wagga Wagga and Tamworth this spring, according real estate group Raine & Horne.
Executive chairman of Raine & Horne Angus Raine said that the much-hyped growth in Sydney’s median dwelling price — which has risen by almost 16 per cent in the last 12 months to $856,000 — is driving demand for property in some of NSW’s major regional cities.
“Towns such as Bathurst, Wagga and Tamworth offer real estate prices that are significantly below the Sydney median, while rental returns above 5 per cent compare favourably to those generated by properties in the capital city,” the executive said.
“These robust population and services hubs appeal to owner-occupiers and investors who are prepared to look further afield because of quality schools and hospitals, employment, diverse economies and a comfortable way of life.”
Bathurst
Bathurst, 200 kilometres west of Sydney, combines rural, manufacturing and education industries. It has a median price of $343,750 for houses and $295,000 for units.
“We are expecting a very strong spring market as a consequence of low stock levels, falling days on market and more demand for entry-level property,” said Matt Clifton, director of Raine & Horne Bathurst.
“First-time buyers purchasing homes up to $650,000 won’t pay any stamp duty and there are discounts for properties worth between $650,000 and $800,000.
“If we get the stock, it will be a fantastic selling period for those who decide to move house in Bathurst.”
Tamworth
Bryan Bolitho, principal of Raine & Horne Tamworth, said that his agency has just listed a 5-acre property at Catherine Way at Moore Creek, Tamworth, in the high $900,000s that will appeal to retired farmers who don’t want to live in town.
“At the entry-level end, it’s still possible to pay under $250,000 for a three-bedroom house such as 8 Fisher Road, Tamworth,” Mr Bolitho said.
“Tamworth is the largest inland New South Wales city west of the Great Diving Range, located 40 minutes from Sydney and an hour from Brisbane by plane.
“We have two hospitals, some of the best schools and have almost doubled our water supply. The town is going gangbusters.”
Wagga Wagga
Wagga Wagga is a central hub providing services to more than 185,000 people in the Riverina, in NSW’s southwest. With strong economic and population growth, the area has an unemployment rate that is consistently below state and national averages.
“Economic diversity is the key to the success of regional towns, and Wagga Wagga has this commodity in spades,” said Grant Harris, director of Raine & Horne Wagga Wagga.
“Government departments such as Centrelink are major employers, [as well as] the Australian Army base at Kapooka, the RAAF base at Forest Hill and Charles Sturt University.”
An unusually busy winter real estate market has led to a shortage of housing stock, with listings down by 20 per cent compared to spring 2016.
“We are desperately looking for quality stock and it’s a great time to sell a property in Wagga right now,” Mr Harris said.
The median house price in the 2650 postcode, which includes 16 suburbs of Wagga Wagga, is $300,000, with a median weekly rent of $340. Annual growth of 5–10 per cent is possible, according to Mr Harris.
“Yields above 6 per cent are common and Wagga’s transient population generally produces low vacancy rates. However, vacancy rates fluctuate depending on the season. They generally fall as the weather warms.”
There is a lot of site unseen buying, with plenty of owner-occupiers selling up in Sydney and buying acreage that comes with a nice house, Mr Harris said.
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