By Herron Todd White
Mildura Property Update
The Sunraysia market is driven by a number of influences, particularly local population growth, employment prospects and interest rates. The availability of credit also affects the number of buyers.
Our key horticultural industries have been one of the main drivers of local economic activity. Growers have been busy developing new plantings of table grapes, citrus and almonds, which has had a significant flow on effect through our economy. Our local service and industrial industries have benefited from the stronger confidence.
Investors are generally purchasing lower priced properties due to high rental yields and an attractive entry point into the market. These include older dwellings that have yet to receive any significant recent renovations as well as units that are low maintenance and provide an investor with high rental yields.
Higher priced properties are predominantly purchased by upgraders as well as people downsizing from out of town into large, high end homes but usually with a smaller, easier to maintain allotment. The stronger rural land values over the past three to four years have allowed many retired farmers to be able to afford better standard homes in their retirement than was previously the case.
Shepparton Property Update
Shepparton’s market is being driven by a splash of spending on public infrastructure as well as a flurry of construction activity for private businesses.
Many local manufacturing businesses are expanding to larger scale premises, which is having a flow through effect on the whole market. As stated in previous Month in Review entries, the hospital expansion is bringing a wealth of jobs for both short term construction and ongoing 31 medical staff, as is private sector allied health work, which is bringing population movements from outside the Goulburn Valley. This has been steady now for the past 12 to 18 months and will continue throughout 2020.
The land situation in the area is tightening, with a number of larger estates being in their last stages. This will start to put upward pressure on land values, the likes of which we haven’t seen in over a decade. This will hit first home buyers the hardest as they make up a large chunk of the new home builder pool. Investors are still in the area chasing the strong yields that we have to offer, but the intensity the out of town investors brought six to 12 months ago has cooled off. Unit prices have started to bounce back with a couple of good results recently.
Overall the market is still performing strongly with sustainable growth rates. Many agents are reporting sub 30 days on market and have been for an extended period.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.