The month in review: Regional NSW
By Herron Todd White
October, 2009
WAGGA
The poorest performing sectors in the Wagga market
over the past 12 months or so has been the top end
($400,000 - $700,000) and the rural residential markets
($500,000 - $700,00). Its not that prices in these markets
have gone backwards, rather that the number of
transactions has slowed. In contrast we have seen the
number of transactions in the First Home Buyers market
go gangbusters, which probably unfairly makes the other
sectors seem to be underperforming.
We think that the GFC has probably made some potential
purchasers at the upper end of our market a little bit
tentative, and people seem to have adopted the “wait and
see” attitude. This has led to a slow down in these markets
over the past 12 months, however local real estate agents
are reporting that there has been a slight increase in the
number of enquiries in these sectors over recent weeks.
LEETON
So what sectors have done it really tough over the last
twelve months? Well all of them, but a few have done a
little tougher than others.
Blocks of flats in small country townships in remote
locations, prestige properties and new subdivsions
with over priced house and land packages in secondary
locations are my top three. Buyers beware; if blocks of
flats in small country towns are showing returns over
10%, ring your alarm bells. Do your homework on vacancy
allowances so your returns are reflective of how it really is.
Recent sales have showed falls of up to $100,000 so take
a bit less, before it becomes a lot less. And finally, do not
buy an over priced house and land package on the fringe
of a secondary location. Over priced building contracts in
moderate locations are not something that a good rain or
economic recovery will remedy.
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