2 December, 2010

Improved consumer confidence, rainfall underpin NSW regional price growth in 2010: Raine & Horne

After almost a decade of continuous struggle the NSW Government finally declared the formerly water-poor state drought-free in October, and not surprisingly home owners and investors in some regions are enjoying improved real estate returns.

In Central Western NSW, drought breaking rains and rural sector confidence have combined to boost Dubbo real estate prices by more than 10% in 2010.

Raine & Horne Dubbo principal Peter Allan reported median home prices had skipped from $230,000 to $255,000 on the back of first home buyer and investor interest.

“There is a lot of confidence now the Burrendong Dam is operating at 100% capacity, which means there are at least three good years ahead for local cotton farmers and, with the breaking of the drought, the outlook for farmers and graziers looks positive,” Mr Allan said.

Stronger local confidence has also sustained the surge in housing construction, created by last year’s First Home Buyers Boost.

“More development has resulted in a tightening of land supply, which means the long term outlook for Dubbo property is positive,” he said.

On the South Coast, Raine & Horne Callala Bay and Culburra Beach principal Craig Hadfield reported the region had enjoyed a strong six months since May.

Mr Hadfield said the $1 million plus property market enjoyed the biggest surge, while job creation in nearby Nowra had resulted in more owner-occupiers buying Callala Bay and Culburra Beach homes.

“Nowra is the largest and closest business hub, and is home to naval base HMAS Albatross, the Manildra Group’s ethanol distillery - one of Australia’s largest - as well as the Shoalhaven Paper Mill.

“Nowra is just 20 minutes from Callala Bay and Culburra Beach, and over the past few years more workers from the town are shifting to the traditional holiday hamlets.

“Consequently, the proportion of owner-occupiers is increasing and this is set to underpin property prices long term,” he said, adding that he expected to see relatively stable home prices in 2011.

In the Northern Tablelands, Raine & Horne Armidale principal Geoffrey Turner said more affordable homes had attracted steady buyer attention since May.

“Homes priced between $250,000 and $300,000 have moved if they are priced to sell,” Mr Turner said.

“At the same time, there are few listings. So if you were thinking of selling an Armidale home, now is a very good time to sell.”

Education continues to underpin employment, and accordingly, the investment property market in Armidale.

“It’s a safe and stable area because of the University of New England and the big boarding schools – the Armidale School and New England Girls School.

“People are even moving from Sydney to Armidale for the lifestyle and job opportunities in education.”

Armidale’s education sector also affects the town’s rental market in a significant way.  

“The university has ramped up its boarding fees to $240 a week plus food. This has prompted more students to look beyond the university colleges and to rental homes in the town," Mr Turner said.

“Already three bedroom homes worth $300,000 are renting for $340, which is a healthy gross yield in excess of 5%. This is great news for investors, but means Armidale’s rental homes will continue to be tightly held.”

Raine & Horne is an iconic Australian property firm, with almost 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For further media information contact:

• Angus Raine, CEO Raine & Horne on 02 9258 5422 or 0409 920 697
• Anna Truman, National Marketing & Communications Co-ordinator on 02 9258 5448