One of my priorities is to keep an eye on what the property market is doing in our region so I can advise my clients and give them realistic appraisals if they’re ready to sell. This year has been interesting to say the least.
Despite predictions of massive property price falls, the property market has proved as resilient as always.
In this article, I’ll run through some of what I’ve learned recently. First I’ll give an overview of capital cities then drill down into what’s happening in regional markets.
Property prices rebound in Sydney
While interest rate rises are certainly making investors more cautious, this hesitancy has proved to be a bonus for owner-occupiers. However, smaller supply has seen property prices rise 10.6% since January 2023.
Auctions up by an impressive percentage
Likely due to the slump over the October long weekend, property auctions overall bounced by over 30% for the week ending 8 October. In Adelaide and Canberra, auction numbers surged by more than 50%. Clearance rates were lower than the previous norm of 70%. However, it’s worth noting that most properties handed in are sold within a week after the auction.
Regional markets
Gloucester region owners should take comfort in the news that while regional sea-change property values have undergone a large correction, falling sharply by up to 21% (Byron Shire) the tree-change regions have remained more resilient. While growth over the last 12 months has slowed in the Gloucester region, the loss is just 2.8%. Property prices are still higher than they were in October 2021. However, following the recent warning by the Reserve Bank of Australia warning that further rate hikes might be needed, we need to be mindful that regional areas would not be immune from softer market conditions.
Median home price and yield in the Gloucester region
The median house price in the Gloucester region is $520,000. However this figure doesn’t take rural/ lifestyle properties out of town into account and hides the lower prices of older-style three-bedroom homes in town. Some recent sales in the region include:
Wallanbah Road: $1,855,000
Callaghans Creek Road: $1,200,000
Henderson St: $830,000
Barrington West Road: $820,000
Manning Street: $565,000
Rents are increasing
According to a recent report in The Sydney Morning Herald, asking rents across most regional councils are on the rise. Over the past five years, every regional council has seen at least 20% growth with some seeing 60% or more. This is possibly due to reduced supply and owner-occupiers rather than investors buying homes. Until we see investors starting to move again with home purchases, we will continue to see low rental supply, which translates into higher rental prices.
Is now the right time to invest in Gloucester?
Having been around the (real estate) block a few times, I’ve worked through all the property cycles. One thing I’ve learned is that it’s generally a good idea to buy when the market is predicting the worst. Of course, this depends on individual circumstances. There’s no point picking up a bargain if you won’t be able to service your loan should interest rates rise again. However, if you have the capital and can manage loan repayments without stress, you should be rewarded with the capital gains of real property.
Need advice on selling your Gloucester region property?
As a proud local, I’m here to guide you through the process of selling your home. I specialise in lifestyle, rural and residential properties. I’ve done it myself and helped many families over my career. So give me a call; I’m here to help.
