The Smartline Report - Home Loan News NOVEMBER 2009 Smartline - Personal Mortgage Advisers
   

 

 

The month in review: Regional NSW

By Herron Todd White
November, 2009

 

 

DUBBO
Thursday 21st October 2009 saw the opening of Dubbo’s second McDonalds Restaurant in spite of protests from some parents in West Dubbo. The store is located on the Newell Highway in West Dubbo and backs onto the West Dubbo Primary School.


Initially the development saw strong opposition from parents with children at the school and resulted in McDonald’s Australia boss Catriona Noble offering to help prevent children leaving school during big lunch.“The last thing we want is kids to scramble around the
fence (to go to McDonald’s) so if any kids in uniform from primary school come in we won’t serve them in school hours,” she said.


The $1.45 million store is set to employ more than 100 staff and provide weary travellers the opportunity to stop before entering Dubbo’s CBD.


A development application for the proposed $20 million neighbourhood shopping centre in West Dubbo located in Delroy Park Estate was approved at Dubbo City Council in 2009.


There is a definite need for the shopping centre to service this rapidly growing area which is set to include a large Woolworth’s supermarket, a medical centre and 16 specialty stores and employ 225 staff.


At present the closest available shopping is located on Victoria Street in West Dubbo where the IGA Supermarket, local bakery, chemist, butchers, newsagency and takeaway shops are set in a traditional strip shopping style. There are concerns this area may be negatively impacted with reduction in trade.


Traditionally major developments of this nature have been located in Dubbo’s CBD or east of the Macquarie River and in spite of negatives raised, is viewed as a ‘win” for West Dubbo residents and Dubbo as a whole.

 

MUDGEE
Mudgee is a relatively small town of about 10,000 people. Major projects such as transport are limited because the demand of this style of project is not required.


However some smaller projects have occurred over the last few months which are worth noting. Aldi supermarket has been open for business for the last 6 to 7 seven months and appears to be doing well. Some smaller chain outlets such as Eagle boys pizza have been new additions to the Mudgee CBD in recent months.


The biggest project in the Mudgee area is the new Moolarben coal mine which took its first intake of workers this month. When at full capacity the mine will be employing over 400 workers. This will have a positive impact on the local economy.


With this increase in the local workforce, the residential market should go from strength to strength. I see new homes or renovated homes in the middle price bracket performing the best. The average coal miner in the Mudgee area earns a base salary of about $80,000 plus overtime which can lead to pay packets of over $100,000. Because they are shift workers, and would be looking at homes which they can move straight in to and not have to do any upgrades etc.


Overall Mudgee is travelling along nicely.


BATHURST
The main and notable infrastructure issue of present is the proposed closing down of several large transport depots in the area. This includes a large rail to road depot in Blayney along with a couple of large yards in both Bathurst and Orange. This has the potential to have somewhere between 10 – 50 staff on the unemployment lines depending on how many depots close and how many are able to get away with “scaling down”.

 

Other than that the Bathurst – Orange region has had in recent years has quite a few large projects carried out, including the extension and renovation of the Bathurst Base Hospital which is still ironing out some serious teething issues after having been opened/completed in 2008. The construction of a significant extension to the Bloomfield public hospital in Orange, approximately 60% complete, upon completion will increase the availability of health services to the general region.


Orange City Council has also in the past year or so designed and installed a storm water harvesting plant to help with water supply problems that they have. This system has received numerous local and national awards from various water authorities for the simplicity and effectiveness of the harvesting process.

 

WAGGAWAGGA
The City of Wagga Wagga is part of the Murrumbidgee region in the New South Wales Riverina district. Wagga Wagga is a key industry and administration centre for the wider region and provides a wide range of community and cultural services and infrastructure. In recent years, Wagga Wagga has grown to become one of the largest inland cities of regional Australia and has a unique combination of established industry and existing infrastructure which enable future growth. This is also reflected within property values. Wagga Wagga has seen health property grown in recent years and a strong rental market due an increasing demand for rental properties. Wagga Wagga has a growing population of over 65,000.


Over the past five years, the population of Wagga Wagga has grown at a faster rate than New South Wales and is projected to increase by a further 7,731 persons over the next 15 years. Wagga Wagga has a diverse employment base including strengths in services, defence,
manufacturing and agriculture.


Wagga Wagga has a number of infrastructure projects which are supporting ongoing population and industry growth in the area including:
• Expanding of the RAAF base at Wagga Wagga airport, Forest Hill.
• Expanding of the university veterinary school at Charles Sturt University (SCU).
• Ongoing upgrades and bypass to the Hume Highway, joining Sydney and Melbourne.
• Expansions of suburban shopping centers in Glenfield Park and Forest Hill
• A new industrial waste water treatment facility located at the Bomen Business Park to handle additional industry needs.
• Upgrades to internet broadband services to the region with a new major fibre optic cable running directly through Wagga Wagga.


These infrastructure projects are creating job opportunities within the region, coupled with one of the most severe droughts in decades in the region, is attracting more people to take up residence within Wagga Wagga. This is driving an up swing in the lower to middle range property price, particularly attractive to first home buyers. This has also put pressure on the rental market with a growing population and less available stock. Many investment properties have been placed on the market to take advantage of this up swing. The top end of the
market has been relatively static, not at all surprising given the global pressures on financial markets.


LEETON
There are no major infrastructure projects on the horizon which will have any real benefit to our residential property markets in the short term. Infrastructure spending throughout the region has concentrated on smaller projects and maintenance of existing facilities. Parks and sporting and recreation facilities have been given upgrades and schools are set to benefit from a cash splash but spending on these items has not been substantial enough to sustain employment losses from our agriculturallly focused economy.


If the government wish to make a contribution to expansion and real recovery rather than survival, I would suggest the largest contribution to be made would be to sort out the water sharing plan sooner, rather than later.

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270