Orange Revealed as Central West Hotspot for Investors
This week saw the publication of an article aimed at letting investors know of the potential of Orange as an investment opportunity.
Certainly, the rental market remains strong in Orange even in light of the ongoing uncertainty caused by the continuation of the pandemic.
The vacancy rate within our agency over the last few months has been consistently around 1% or less and even though there has not been very many properties available for rent the enquiry and applications from tenants has remained strong and demand is high.
Even with such high demand, with the continuing pandemic we have not experienced much upward pressure on rents as yet, but we anticipate that this may change as things start to move toward the recovery of the economy after the upheaval caused by Covid-19.
We expect that the forecasts of people wishing to move out of major cities and into the regional areas will begin to happen and this will put more pressure on demand for property in Orange from both homeowners and investors looking to buy and certainly from people looking to rent a home.
Here is the article:
Central West Hotspot Revealed
A regional city located 254 kilometres west of Sydney has been dubbed a property market to watch, with capital growth and rental income gains among the best of hotspots.
Orange, NSW, is the property market keen investors should be keeping a close eye on, according to Propertyology head of research Simon Pressley.
Mr Pressley and the team at Propertyology consider the city with a population of 41,000 to be one of the strongest markets in Australia, based on numerous research captured over the past five years.
“For (both) capital growth and rental income growth, the property market in Orange, NSW, has already been one of the best in the country over the last five years,” Mr Pressley said.
According to the researcher and property enthusiast, the past five years have seen capital growth in Orange increase by 38.6 per cent and rental growth by 15.2 per cent.
By comparison, Sydney has seen capital growth of +22.2 per cent and rental growth of +5.8 per cent over the past five years, according to Propertyology research, which found that Hobart, Tasmania, has been the only capital city to record higher growth in both capital growth (+58.8 per cent) and rental growth (+39.4 per cent) than Orange.
“38.6 per cent capital growth over the last five years is superior to seven out of eight capital cities,” Mr Pressley said.
“A rental yield of 5 per cent also means that, at a time when interest rates are circa 3 per cent, investment incomes cover all holding costs. Plus, rents have already increased by a significant 15 per cent over the last five years.”
Mr Pressley added the Orange economy is “one of the strongest in Australia”, further cementing its status as an enviable hotspot for investors looking to expand their portfolio.
“Even during COVID, the performance of the local tourism trade has been solid. Hotels and short-term accommodation businesses have had near 100 per cent occupancy since Easter,” he said.
“Tourism, agriculture, mining, manufacturing, health and education underpin the incredibly diverse economy of Orange.
“The growing economy will place additional pressure on Orange rents.”
In conclusion, Mr Pressley said property investors in Orange are “very well positioned to ratchet up rents while enjoying another surge of capital growth”.
“Orange is one of many really strong regional cities that Propertyology describes as a ‘mini capital city’. They have good-quality infrastructure such as modern hospitals, universities and easy access via their expanding airports. People are attracted to the calmness and high-quality lifestyle, great restaurants, cafés and food experiences using local produce,” he said.
“Propertyology helped some of our clients invest in Orange a few years ago. Right across Australia, there are umpteen great locations just like this. Investors would be wise to remove their blinkers and personal biases. You owe it to your own future to objectively assess fundamentals of every location.”
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Article by: Emma Ryan. To find out more about Emma click here: https://www.realestatebusiness.com.au/author/eryan
