Wagga Wagga Property Market Update 1st Half of 2022
In Q1 2022, Wagga Wagga recorded a median house price of $630,000, and a median unit price of $361,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 31.3% for houses and 57.0% for units. Total sales slowed between Q1 2021 – Q1 2022, by -46.0% (to 27 sales) for houses and by -5.9% (to 16 sales) for units. Owner occupiers can benefit from real returns on capital investment, as median price growth has been fuelled by high demand and lower stock levels. The market is undersupplied, creating an opportunity for developers who can create ready-to-sell stock.
Average vendor discounts between Q1 2021 and Q1 2022 have tightened for both property types, to -1.5% for houses and -1.2% for units. Market conditions in Wagga Wagga have now shifted closer to the vendors asking price, where buyers need to offer closer to the first listing price to secure their property.
House rental yields in Wagga Wagga sat at an attractive rate of 4.2% in March 2022, significantly above Sydney Metro (2.3%). With a lower entry price compared to Sydney Metro this is great news for investors, particularly as demand for rental properties have increased, with average days on market declining by -33.3% to 16 days in the past 12 months to Q1 2022.
3 bedroom units have provided investors with +12.8% rental growth annually, achieving a median rent of $440 per week.
Wagga Wagga recorded a vacancy rate of 0.3% in March 2022, slightly above Wagga Wagga LGA (0.2%) but well below Sydney Metro (1.6%). Vacancy rates in Wagga Wagga have continued to decline in the past 12 months, to the lowest recorded for the past 3 years. This indicates increased rental demand coupled with limited supply in the market. Vacancy rates in Wagga Wagga have consistently trended under the Real Estate of Australia’s healthy benchmark of 3.0%, even throughout COVID-19, indicating a sustainable investment environment for investors.