Significant changes in Australia’s real estate landscape are forecast in The Australian Economic & Property Property Report 2018 released by PRD Research today. The winds of change are bringing good news for property owners in regional areas across Australia. Here are some of the main points and how they relate to Wagga Wagga’s Real Estate Market.
Economic indicators for the last 12 months ending March 2018 show improved confidence in Australia’s economic outlook with consumer confidence up, inflation stable and improved unemployment levels.
Australia’s population increased by 1.6%, slower than the dwelling approvals growth rate of 8.5% to April 2018. An increasing amount of residential construction is expected to create an oversupply of new dwellings in some parts of Australia.
Demand for local land estates such as Lloyd Estate in Wagga remain consistent with land releases selling in good time. This demand encompasses both owner builder and pre-built new dwellings.
The proportion of family income required to rent a property in NSW increased from 29% last year to 30.1% in 2018.
Home Loan affordability nationwide decreased by 3.3% over the 12 months to March 2018. However, Wagga Wagga was identified as one of the nation’s most affordable places to buy a home in PRD’s Real Estate Housing Affordability Report ‘Ready, Set, Go Regional’ 2018.
Market Activity & Strength.
Good news for regional areas with regional listings seeing a boost in activity across Australia, increasing by 12.8% over the past 12 months. This surpasses capital city new listings growth of 10% confirming a
change in listing activity dynamics.
Average days on market for capital cities is sitting at 37 days while average days on market in Wagga dropped from 94 to 83 for houses and increased from 75 to 97 days for units.
Average vendor discounting in Sydney was 5.6% and for Wagga 4.3% for houses and 3.8% for units during the same period.
Australia wide the number of first home buyer loans increased over the last 12 months by 28%. NSW recorded
Markets in capital cities are returning to a more sustainable level of growth. There has been negative price growth in all capital cities except QLD & Tasmania. Sydney’s median property price dropped by 11.1%.
Wagga saw an increase in both the median house price, up 5.6% to $375,000 and unit price up 1.1% to $220,000. Regional markets across Australia averaged 4.0% growth in property prices. Wagga’s median property price sits above the state average of $336,591.
Owner Occupier spending has increased over the past 12 months, taking over investor spending, demonstrating increased confidence in the real estate market.
Tighter tax laws for foreign investors will allow for Australian investors to compete on fairer terms however, this may have a negative impact on some regional areas.
Wagga’s median rent price sits at $340 per week for houses and $265 per week for units. Rental yields for houses (4.9%) and units (5.7%) in Wagga compare well with the implied rental yield for combined Australian capital cities in May 2018 of 2.9% for houses and 4.0% for units.
Interest in investment in regional areas is increasing as an alternative option for Metro Markets. Regional Market price growth is slowly outpacing both capital and metro markets, suggesting now is the time to look into regional property investment.
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