With an Australian high prediction of 21.6% population growth[i], there’s more good news for property owners in the Upper Hunter Valley town of Muswellbrook with real estate values up 5% in 2020, according to leading real estate group Raine & Horne.
Grant Jupe, Principal of Raine & Horne Muswellbrook, explained there is a combination of factors driving population and property value growth in Muswellbrook. These include Muswellbrook’s robust economy, the introduction of the Federal Government’s $25,000 HomeBuilder Scheme and the town’s attractive real estate affordability, investment yields and vacancy rates.
“Despite the lockdowns and restrictions in the autumn, Muswellbrook’s mining industry is an essential service, so work continued as normal,” said Mr Jupe.
“Likewise, our agricultural services chugged away, along with work in the region’s thoroughbred horse studs and the abattoir, while the town’s retail industry continued to tick along despite the restrictions.”
Mr Jupe continued, “Our low unemployment means many renters are starting to make the exciting leap into the first home market, which is driving up activity and values.”
In the last month, Raine & Horne Muswellbrook has exchanged contracts on three properties, and there are another 12 properties under offer, including a block of land at 11 Jillaroo Way, Muswellbrook for $220,000.
“The government’s HomeBuilder grant of $25,000 is also helping drive enquiries for blocks of land, while the majority of first home buyers are happy to take advantage of the affordability of established properties in Muswellbrook priced between $200,000 and $350,000,” said Mr Jupe.
“Many young couples are earning good salaries in the mining industry, have saved hard and now want to get off the rental treadmill.”
Sydney investors have recognised Muswellbrook’s strong rental returns
Because of Muswellbrook’s property market performance to date in 2020, more yield-hungry Sydney buyers are seeking out stable regional economies such as Muswellbrook for investment opportunities, Mr Jupe remarked.
Sydney investors are pursuing properties in Muswellbrook priced between $200,000 - $350,000.
“This buys a very nice home and can deliver rental yields of 6- 7%,” Mr Jupe confirms. To illustrate, 3 Wilson Street, Muswellbrook is under offer to Sydney investor for $295,000. “The investor visited Muswellbrook on a Saturday afternoon and made the offer on the spot. The property is earning a weekly rent of $350.
“Better still because we have a stable economy in Muswellbrook with healthy employment, rental property vacancy rates are less than 2%.”
Muswellbrook benefiting from regional migration
Mr Jupe reports his firm has sold several properties to green changers from Sydney and Newcastle.
“These people are moving to Muswellbrook because they don’t feel comfortable in the city environment anymore,” he said.
“They are selling up for good prices in the cities and buying a comfy family home in Muswellbrook for $300,000.”
The adoption of remote working is also driving some of the migration to regional centres, Mr Jupe advises.
“Over the past few months many workers in the cities have discovered they can work from home, and therefore can move to regional centres such as Muswellbrook and take advantage of our real estate affordability. This intrastate migration will continue to fuel the predicted population growth for our town.
“The Hunter Expressway is another factor attracting city slickers to Muswellbrook, because the roadway means they’re just three hours from Sydney and 90 minutes door-to-desk to Newcastle.”
For all your sales and property management needs in Muswellbrook and the Upper Hunter, contact Raine & Horne Muswellbrook on 02 6543 2333.