Wagga Wagga property and how it’s fairing this year

MARKET CONDITIONS

In the first half of this year Wagga Wagga saw a record a median house price of $360,000, along with a median unit price of $265,000.

This resulted in an annual (Q1 2018 – Q1 2019) price shift of -4.0% in houses and price growth in units of 23.3%. When compared to the 2nd Half 2018 Wagga Wagga Research Factsheet, which reported annual (Q3 2017 – Q3 2018) median price changes of 4.2% and -17.0% for houses and units respectively, houses in Wagga Wagga have become more affordable whilst units have exhibited significant price growth. It is important to note that a limited number of sales transactions within the unit market on a quarterly basis means more volatile shifts in median price occurrence.

In comparison, the wider Wagga Wagga Regional Local Government Area (LGA) saw a median house price of $340,000 and a median unit price of $265,000 as of Q1 2019, with annual (Q1 2018 –Q1 2019) price movements of -6.8% and 30.4% respectively. This positions the Wagga Wagga as a premium house market given its higher median price which also showed greater price resilience. The small sales pool of units sees its median price remain on-par with the wider LGA overall.

Wagga Wagga recorded a median rental price of $345 per week for houses and $280 per week for units across Q1 2019, which is representative of 1.5% (house) and 3.7% (unit) growth across the previous 12 months (Q1 2018 – Q1 2019). The average days to let property in Wagga Wagga declined over the period, to 27 days for houses and 28 days for units as of Q1 2019. Yields of 5.1% (house) and 4.5% (unit) in December 2018 were well above Sydney Metro, which saw 2.9% and 3.8% respectively. This highlights Wagga Wagga’s real value for investors.

FUTURE DEVELOPMENTS

Wagga Wagga is set to benefit from an estimated $216.9M of projects which are set to commence in the 1st half of 2019. Most of this development is focused on commercial activity ($158.M or 71.8%), while the remaining balance is used on infrastructure ($61.1M or 28.2%).

A focus on commercial and infrastructure projects at such a large scale is positive for residents, with likely benefits including greater employment opportunities and the provision of enhanced amenities.

A key project for the period is the $150.0M Bomen Solar Farm, which will create a 120MW peak output from 400,000 panels. The farm will be built across a 250 ha site.

Key infrastructure for the 1st half of 2019 includes the $60.0M Riverina Intermodal Freight and Logistics Hub (RIFL). This proposed project would take place across 2 stages, and aims to capitalise on Wagga Wagga’s position relative to surrounding capital cities. The project will improve the connections between rail and road, and create adjoining industrial development.

If you’d like to read more about the Wagga Wagga Property Fact Sheet for 1st half of 2019 then click here.