Market Update: January to March 2019
Welcome to our Market Update for Orange.
It has been an interesting start to the year in the Orange market with a number of factors having an effect on what’s happening in the market.
We are experiencing a shortage of stock, with fewer properties being on the market at this time of year as compared to previous years, however, there are still buyers out there and a lot of what we do list is selling quickly when it is meeting the market conditions.
The condition of the current Sydney market and the ongoing media coverage around the downturn is not affecting Orange in a negative way.
Even though there has been tightening of lending criteria by the banks on the back of the Royal Commission, the Orange market to date still receives strong interest from buyers and well priced properties across the market are still in demand.
Agent Liz McAtamney believes that with the possibility of a new government and with new laws around negative gearing being considered it is actually a good time for investors to get into the market, particularly considering that the tax laws will be grandfathered. This means that the current laws continue to apply to properties owned before the new legislation is brought in. In these circumstances, it would make sense for an astute investor to take advantage of the current laws and buy prior to the election and, on the flip side of that, with the current low stock levels the conditions are good for vendors to optimise the price they receive.
Our low local unemployment rate and the large scale developments and projects that are happening around Orange are good indicators of our strong local economy as they bring workers to town both during the construction phase and then again as the projects are completed and people move to town with their jobs and ultimately buy into the local market.
Orange is currently experiencing very low rental vacancy rates, with the rate at Peter Fisher sitting consistently between 1% to 2%. These projects coming to town at a time when there is pressure on rental demand means that we would expect rents to rise, which is not good news for tenants but great news for investors seeking a good return on their investment.
All in all, things are looking positive for Orange for 2019 and we look forward to keeping you updated through the year.
Current projects & developments in Orange:
Progress of new Private Hospital
Bloomfield Private Hospital ($150+ million) – work continues to progress on the hospital as shown in the photo (above) taken on 11 March 2019.
New DPI Building ($50+ million) – work has now commenced on this project at the new site in Prince Street
Orange CBD Upgrade ($30 million) – work continues on the old Myer site and Post Office Lane and residents are looking forward to seeing what shops and eateries the refurbished site will bring.
New Medical School network at Charles Sturt University – the new network will enable local students to stay in the community they live in to complete their medical training and gives them the chance to access long-term training opportunities across the newly created Murray Darling Basin Medical Network.
The additional training node will embed medical students in a regional centre and give them specific training in the health needs of the area – thus working to produce graduates well equipped to stay in rural areas. The network will provide a range of benefits to the community including:
- shorter wait times for access to medical care
- reduced travel times for key medical procedures
- reduced stress and mental health benefits for local residents
- a locally embedded higher education research community with a focus on studying and addressing specific health issues of concern to local rural residents.
New Rail Bridge Project ($18+ million) – at the end of 2018 it was announced that construction of a new railway overpass bridge and the next stage of Orange’s southern feeder road would begin in early 2019 and should be completed over 12 months. The project includes:
- the next stage of the southern feeder road, involving the construction of a 720 metre new road from Huntley Road east to Elsham Avenue
- a new 23 metre long bridge over the main western railway line in South Orange
- a 400 metre extension of Edward St from McNeilly Avenue alongside the former saleyards site to the new southern feeder road
Latest Statistics for Orange:
Current median price (houses): $405,000
Current median price (units) : $275,000
Current median rent (houses): $370 per week
Current median rent (units): $270 per week
Current median gross yield (houses): 4.75%
Current median gross yield (units) : 5.11%
Source: https://www.yourinvestmentpropertymag.com.au/top-suburbs/nsw-2800-orange.aspx
