Residential auctions in Sydney recorded their highest clearance rates in two years in August. This improved city real estate confidence is starting to flow to regional growth centres such as Bathurst.
Greater Sydney clocked up a clearance rate of 81.7%, with suburbs in the Inner West consistently achieve auction clearance rates between 80-85%, noted Paul Pettenon, Principal of Raine & Horne Concord.
“The dual winter interest rate cuts have generated buyer confidence, which is starting to flow into the Inner West market. This buoyancy is setting the scene for a bumper spring residential property market,” he added.
Savvy vendors are reading the market tea leaves and listing their properties for sale. “Yet, the supply of properties for sale is unusually low for this time of year,” Paul commented.
Across the Blue Mountains, real estate markets in Bathurst look set for a robust spring, according to Michelle Mackay, Co-Principal, Raine & Horne Bathurst. “We see a pickup in online buyer enquiries from Sydney, while vendors have been waiting for the gardens to start blooming before listing their properties for sale,” Michelle said. “However, owners will need to work around the stringent restrictions on water usage introduced in September.
“That aside, people still need to buy and sell homes regardless of the climate and seasonal factors.”
Longer-term, Bathurst continues to enjoy robust capital growth. Yet, with a median house price of $420,000, the town’s real estate affordability continues to be a significant attraction for city investors. “Our rental yields are around 4%, and we have a vacancy rate of just 1%,” Michelle said. “The smart money recognise Bathurst has economic diversity underpinned by strong education, food manufacturing, healthcare, and construction sectors. Bathurst also has 3,324 GST registered businesses, according to the Australian Bureau of Statistics.