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Property market still surging

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Nicholas Rupolo, Narrandera Argus

There are no signs the Riverina property market is set to cool down as demand for new homes and low interest rates keep city buyers in the hunt for a switch to the country.

QPL sold sign
QPL Narrandera’s Andrew Pellow with one of the many ‘sold’ signs going up around Narrandera and elsewhere that have been sold by his agency. Photo: Narrandera Argus

In a new report, the Housing Industry Association (HIA) found that new home sales have increased nationwide by 9.3 per cent with NSW experiencing a big jump in regional areas.

Median house prices in Coolamon and Narrandera have increased around 20 per cent and 17 per cent respectively this year.

With coronavirus restrictions now opening the gates to investors and city buyers to enter the market again, Andrew Pellow from QPL Rural at Narrandera thinks the market will stay strong for months to come.

“As long as money stays cheap and interest rates are the way they are, more and more people will move out of the city,” Mr Pellow told the Argus.

“There’s a very high demand for new homes in the area. From the builders I’ve spoken to they are under the pump.

“Most areas we operate in you tend to find a shortage of land that’s available. The amount of land available is limited.

“As far as prices go they’ve jumped significantly, most areas jumped between ten and 25 per cent, of course it’s variant on the property.

“We’ve seen a lot of city buyers and buying to relocate. It’s been really strong on the lower end of the market for investors, looking for a lesser return because money’s cheap at the moment.

“It doesn’t show any signs of slowing down.”

The last 18 months has seen metropolitan natives escape from the city with more people setting up in regional Australia.

Population boosts in Wagga have caused spikes in house prices in Coolamon where QPL Rural have set up a new office.

The median price for a free-standing home in Coolamon jumped over $300,000 earlier this year.

“Coolamon is really strong at the moment, there are low stock numbers and good prices,” Mr Pellow said.

“We see Coolamon booming longer than others because they will be capitalising on the Wagga market.

“Moving out of Wagga into Coolamon, or moving to Coolamon to be closer to Wagga as well. We might see that carry on for another 12-18 months.”

HIA economist Tom Devitt believes this trend will carry on and provide a boost to the construction industry.

“These relatively strong sales will ensure that the boost in home building flows through to the second half of 2022,” said Mr Devitt.

“When combined with the ongoing strength in renovation activity the home building sector will continue to pull the economy forward for at least the next year.

“This will continue to see high demand for skilled trades and ongoing employment opportunities in the sector into the second half of 2022.”

Narrandera Council’s Economical Development Manger Peter Dale said the demand for land on Council’s Red Hill Industrial Estate had also escalated in 2021 with new land subdivision occurring and several sites sold for new business development that is expected to employ a significant number of new people.

New roadworks at the western end of Driscoll Road are underway with the extension of the bitumen surface and kerb and guttering to be installed. Driscoll Road will terminate as a cul de sac at the western end.

Mr Dale said these new businesses recognised the strategic advantages of relocating to Narrandera which is at the junction of two major interstate highways and equidistant location from major capital cities.

“Development on the estate of new businesses that will employ people is a major boost for Narrandera Shire and the word is expected to spread over coming months generating even more enquiries,” Mr Dale said.

To meet this demand Council is currently reviewing its land holding on the estate and considering the next steps required to ensure stocks of attractive blocks are available for sale to potential business developers.

Council is also continuing negotiations with potential developers of an Independent Living Village or other suitable mixed development on its 1.4ha site on the corner of Elwin and Crescent Streets Narrandera.

“With the current strong uptake of available property for sale the need for new residences to suit over 55s is even more apparent,” Mr Dale said.

“Many older Narrandera residents who are keen to remain in their town would like to downsize from typically older and larger housing to something more modern and manageable.

“This site is owned by Council and can be developed in a number of different ways. Council has arranged the preparation of an architects concept plan that shows several exciting residential estate layouts.

“Ongoing discussions and negotiations are continuing with prospective developers to encourage a much needed residential housing development on this site,” he said.

Narrandera Argus 28 October 2021

This article appeared in the Narrandera Argus, 28 October 2021.

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