Wagga Wagga Property Market Update 1st Half of 2020
In Q1 2020, Wagga Wagga recorded a median house price of $371,500, and a median unit price of $271,750. This represents annual (Q1 2019 – Q1 2020) median price growth of 0.8% for houses and a very slight price softening of just -0.1% for units. Between Q1 2019 – Q1 2020 total sales in both markets improved, by 8.8% for houses (to 260 sales) and by 55.6% for units (to 28 sales). With steady to moderate price growth and increased sales activity, Wagga Wagga proves itself as a resilient market. Now is the time to transact.
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -4.6% for houses and -4.8% for units. Market conditions in Wagga Wagga offers unique opportunities for both buyers and sellers. Sellers can now achieve a final sale price closer to their first list price, whilst at the same time buyers can benefit from a discount.
Over the past 12 months, house rental yields in Wagga Wagga slightly tightened to sit at 4.9% in December 2019. This suggests the house rental market is in quite a healthy position, particularly when combined with the 0.8% increase in rental demand in the past 12 months to Q1 2020 (with 514 house rentals).
3 bedroom houses have provided investors with +3.0% rental growth annually, achieving a median rent of $340 per week.
Wagga Wagga recorded a vacancy rate of 2.2% in December 2019. This represents a declining trend over the past 3 years, which indicates a continuous improvement in rental demand. Wagga Wagga vacancy rate is also well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and Sydney Metro’s 3.6% average for the same period. This confirms there is a healthier rental demand in Wagga Wagga, which is good news for investors.