A four-bedroom character-filled home at 92 Best Street, Wagga Wagga recently sold for $1.565 million. Photo: PRD Real Estate.
The Riverina property market has bounced back to pre-COVID levels, showing good growth in Wagga Wagga and Griffith, as well as Forest Hill, Lake Albert and Gobbagombalin.
PRD Real Estate’s chief economist Dr Asti Mardiasmo said, overall, the region was experiencing a “growing market” in the Wagga and Griffith local government areas, especially in the house market.
“Admittedly it is not as strong as 2021-2022, when you were seeing double digit growth, however you are back to seeing that strong growth pre-COVID-19,” she said.
“This is actually better, because then it’s at a more sustainable rate and makes the market more accessible for first home buyers.”
While there has been some price stabilisation in the market, especially in units and vacant land, Dr Mardiasmo said it was “nothing to be alarmed about”.
“The area has just come back from massive growth in 2021-2022, so now we are back to ‘normal pace’. If anything it gives first home buyers a better chance to buy a unit or land – and then build their dream home,” she said.
While ‘average days on the market’ is tracking up, especially in Wagga, it remains quite stable in Griffith, which indicates people are taking a bit more time before making the commitment to buy.
“This is not unusual, as we go into a more stable cash rate condition,” Dr Mardiasmo said.
“People then do not have that fear of missing out, or worry about having to make their decision quickly.
PRD Chief Economist Dr Asti Mardiasmo has provided the latest property outlook for the Riverina. Photo: PRD.
“The ‘average vendor discount’ has increased slightly compared to 12 months ago, which means there is also now room for more negotiation. This links in well with ‘days on market’ going up slightly, as buyers are looking for the best deal.”
The Riverina remains a great place to invest, with the vacancy rate at 1.0 per cent as of December 2023, which is lower than Sydney Metro’s 1.7 per cent and the REIA’s healthy benchmark of 3.0 per cent.
“This means quicker occupancy of rental properties, which is what every investor wants,” Dr Mardiasmo said.
Individually Wagga was at 1.0 per cent and Griffith was even lower at a 0.6 per cent vacancy rate, while the rental yield was 3.8 per cent for houses and 4.9 per cent for units in the Riverina, which is higher than the Sydney metropolitan areas.
“The Riverina is definitely a much more affordable investment alternative, with a higher rental yield and properties being rented much quicker,” Dr Mardiasmo explained.
People are flocking to Wagga, Griffith and surrounding towns due to growth in the technology, infrastructure and defence sectors, however the renewable energy industry is the flavour of the month.
In the Wagga local government area alone, there are more than $1.4 billion worth of projects due to commence in 2024, which Dr Mardiasmo said would continue bringing people to the region.
Backed by a national research department, and with a combined 100 years of real estate experience, PRD Real Estate Wagga Wagga can assist with residential, rural and commercial sales, leasing and investing.
Original Article published by Katrina Condie on Region Riverina.
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