Market Update Spring 2019

The Central Western Daily recently reported that Orange is one of five areas in the Central West that has outperformed several capital cities in price growth over the past 10 years and is one of nine areas that have experienced median house prices tripling in the last 20 years.

The median house price for Orange has grown from $116,000 in December 1998 to $410,000 in December 2018 which is an average growth rate of 6.4%.

The house price increases are heavily influenced by the strong local economies, such as that experienced by Orange in recent years. The strength of our economy is fuelled by healthy tourism, particularly around food, wine and increasingly cycling and running events, high demand for quality agriculture and viticulture products as well as good infrastructure projects, including projects such as the new private hospital, the new head office of the Department of Industry and the expansion of the medical facilities at Charles Sturt University to name a few of the bigger ones.

People relocating from the capital cities to Orange is also having an effect on the growth of the town as there is a growing appreciation for the lifestyle opportunities presented by a regional town like Orange. The wine and food culture, good healthcare, great schools and good job opportunities combined with more affordable housing than the cities make our town an attractive package and it is a trend that is expected to accelerate.

The investors are also aware of this and interest in Orange by investors from Sydney particularly continues to be strong as the low vacancy rates for rental properties remain steady. Currently, we are experiencing rates between 1.5 and 2.0% within our agency and the average for the region is around 2.3% based on recent figures released by the Real Estate Institute of NSW.

So, what does the Spring market leading into the Christmas period in Orange currently look like? Here’s what our agent, Adam Savage says:

Adam says: Traditionally the Spring period sees a spike in listings and sales, I feel this will continue in the Orange market throughout 2019 with outside Orange interest from both investors and owner occupiers alike. Orange has a great name and continues to build on its fantastic foundation of a desirable place to invest or live.

Latest Statistics for Orange

Current median price (houses): $410,000

Current median price (units): $266,000

Current median rent (houses): $380 per week

Current median rent (units): $270 per week

Current median gross yield (houses): 4.82%

Current median gross yield (units): 5.28%

Source: CoreLogic. Data reported to period ending May 2019.

Recently there have been some major announcements made in the mining, manufacturing, transport and retail sectors that will help ensure the continued growth of Orange into the future.

At the end of August, Newcrest Mining revealed it would push ahead with plans to spend $820 million on upgrading the Cadia mine. Extra jobs and growth at the Cadia mine will be created under a plan to expand above-ground plant and underground materials handling.

The plan involves spending $80 million on plant and processing works while a further $740 million would be spent on creating the next mining caves. The plan will move to the feasibility stage which is due to be completed in 2020.

Further, it was announced this week that a Sydney aluminium company, A-Tech Australia Limited, has bought the former Electrolux factory site and plans to invest $30 million to create a manufacturing operation to supply developments in Sydney, Melbourne and Brisbane.

They will use the Orange factory to make aluminium windows, doors, curtain walls, facades, pergolas and skylights for residential and business developments and so will build an extrusion plant in part of the Edward Street site and will lease the rest of the complex to other companies.

At this stage its estimated that it will initially create 25 to 30 jobs and they hope to begin installing their equipment by the end of the year and are looking to start work next year.

A big drawcard for them choosing the Orange site is the proximity to the new southern feeder road currently under construction and the ability to easily use the adjacent rail line to transport products.

Also transport related was the news from Regional Transport Minister Paul Toole, that from 14 October this year there will be coach links from Orange to Bathurst put in place to align with the Bathurst Bullet Trains both during the week and on weekends, effectively providing Orange passengers with two daily morning city departures and two return services at night.

This is great news, not only for regional residents needing to access services in Sydney but it also opens more tourism opportunities for people from Sydney to visit our regional areas. Commuters will still be able to access integrated ticketing with this connection, meaning they just need the one ticket to travel from Orange all the way through to Sydney and passengers also have the option of using their Opal card for the Bathurst-Sydney train.

In the retail sector, work on the Orange City Centre refurbishment is continuing and is getting closer to completion. There has been much speculation about what new shops and services will move in once it’s done.

Here is a list of the tenants moving in so far, as recently reported in the Central Western Daily:

• Leaf Café
• Sportscraft – women’s wear on the Summer Street frontage
• Noiva Massage and Beauty
• Sportsgirl – women’s wear
• Laser Clinics Australia
• Lone Star – rib house on Post Office Lane
• Majestic car wash in the existing car park
• Best & Less – family clothing
• Bay Audio – hearing aid technology
• Orange Health Food – health foods
• Bonds – clothing
• Angus & Coote – jewellery on the Summer Street frontage
• Yoshi Sushi – sushi café in Post Office Lane
• Noodle Time – food court tenant
• Indian Delight – food court
• Little Snack Shack – food court (existing tenant, moving shops)
• Barber Industries – men’s hairdresser
• Laurie Claire – women’s clothing (existing tenant, moving shops)

Source: CWD 12/9/19

All in all, the long term forecast is looking healthy and strong for the local economy and the Orange real estate market. Things are certainly picking up within our agency with a number of new listings about to hit the Spring market in the coming weeks.

As always, we look forward to keeping you updated on what’s happening in the market and our Sales Team is always happy to chat it so feel free to give them a call.