The month in review: Regional NSW
By Herron Todd White
December, 2009
DUBBO
2009 has been a very successful year for the Dubbo
residential property market which was spurred on by
the increased First Home Owners Grant. Properties in the
low to mid cost bracket (up to $300,000) were selling in
record times as first home owners took advantage of the
increased grant. Property values also increased in this
market segment as demand soared.
Housing construction and vacant land sales also
skyrocketed after a period of decline in 2008. Builders
took advantage of the increased grant to target first home
buyers with house and land packages, which proved very
popular. Estates such as Keswick and Delroy Park North
had the cheapest available land and were targeted by first
home buyers, with a large number of houses constructed
in these estates over the past 12 months.
The high cost housing sector has struggled throughout
2009 as the global financial crisis and the ongoing
drought affected the district. The volume of sales in this
price bracket ($400,000+) has been low throughout the
year, with most properties requiring an extended market
period.
The rural residential market has also struggled in 2009
with the ongoing drought affecting property presentation
and water supply. Properties in close proximity to
Dubbo with a reliable water supply are still well sought
after and generally selling within normal marketing
periods. Properties without a reliable water supply are
experiencing extended market periods.
The reduction in the home owners grant at the end of
September 2009, combined with recent interest rate
increases has seen a reduction in housing construction
and property sales. Although there are still some first
home owners active in the market, agents are reporting
a return of investors to the market as rental demand
increases and prices stabilise. The prediction for 2010
is that we could see a reduction in property values as
demand by first home owners diminishes and interest
rates continue to climb.
MUDGEE
The Mudgee residential property market has performed
well throughout 2009, which is great. Low to middle cost
housing really started to race ahead with first time buyers
entering the market and second home owners upgrading
to bigger and better things. The increased grant together
with a strong local economy were the main factors within
this market. Housing in Central Mudgee continued to
perform, with good selling prices and relatively short
selling periods. New houses in the outer subdivisions
slowed slightly but held there value.
In February we predicted this would be the case as long
as the local coal mines were performing well. There were
very few miners who lost there jobs and many more jobs
were created through the initial start up of Moolarben
mine. This was a great boost for the local property market
and for the area in general.
Overall, 2009 has been a very positive year for the area.
Bring on 2010!!
WAGGAWAGGA
TAfter dire predictions for 2009, (the bark seems to be
more severe than the actual bite) the grey sky seems
to be clearing. The Wagga Wagga residential property
market has held somewhat buoyant on the back of the
first home buyers. Houses under $300,000 have been
selling strongly. In more recent times, we are starting to
see the second tier of housing in the $350,000 - $500,000
price range start to move; particularly in the newer estates
such as Tatton and Bourkelands. However, there was less
investor interest and at the top end of the market and
prices have remained stagnate. There seems to be signs
of investors re-entering the market however there is still
little movement in the top end properties.
On the surface would it seem that things have followed
the script with the first home buyers still keen to snap
up good quality properties under $300,000. Investors
are still shying away, and the top end of the residential
market is still stagnating. However, the thing that no one
really predicted was the speed of the recovery. With the
economic outlook being a whole lot rosier, confidence is
growing, and even with interest rates rising it would seem
as the worst is behind us.
It would seem that those who had the fortitude to still
purchase during the last 12 months have come out the
big winners, sales are strong and prices continue to head
north. The losers are those who have held off waiting
for a slow down, which doesn’t seem to have visited this
region.
LEETON
This year has definitely been the year of the first home
buyer. First time buyers kept our lower and middle markets
steady, but unfortunately it was not a great year for our
high rollers, with some of our high end properties falling
up to $100,000 short of expectation. Investors sat on the
fence for the most part, so overall, and unfortunately for
some, our February predictions were spot on. The biggest
influence on the market has been the ability to secure
finance. Many had the will, but the tightening of credit
criteria limited the way.
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