Regional NSW prices to grow by up to 15pc
Robust price growth in Sydney is starting to impact regional real estate markets, according to Raine&Horne.
The real estate group said growth- and yield-hungry investors were competing with local buyers for affordable real estate, which was driving up demand in regional NSW by as much as 20 per cent compared to October 2012.
Regional vendors, however, “are continuing to sit on their hands”, according to Angus Raine, executive chairman and CEO of Raine&Horne, with listings down between 20 and 30 per cent.
“Property owners are waiting for additional evidence that the price growth achieved in Sydney will translate to their region, and appear cautious about jumping the gun early and conceivably missing the opportunity to realise potentially bullish short-term capital growth,” he said.
With prices expected to surge, Adam Porteous, principal of Raine&Horne Batemans Bay, said shrewd buyers and investors are eager to acquire entry-level property on the NSW south coast.
Mr Porteous said listings in the Batemans Bay region are down by as much as 40 per cent, as homeowners wait for more evidence of capital growth.
Buyer enquiries in the region are 30 per cent stronger than October 2012. Mr Porteous said if stock levels continue to fall, price growth of 15 per cent by Easter 2014 is possible.
“Yet there is still value in the market and the smart buyers are grabbing homes before the market takes off,” he said.
Other regions experiencing increased demand but lower listings include the Hunter Valley and the Snowy Mountains, according to Raine&Horne.