Wagga Property Market Update 1st Half 2024
In Q1 2024, Wagga Wagga recorded a median house price of $597,000, and a median unit price of $394,500. This represents annual (Q1 2023 – Q1 2024) median price growth of 4.7% for houses and 17.1% for units. Total house sales decreased between Q1 2023 – Q1 2024, by -11.4% (to 239 sales), but increased for units, by 22.6% (to 38 sales). The house market in Wagga Wagga is undersupplied, as there is less sales and price growth, whereas the unit market is highly demanded (higher sales and price growth). The market is resilient despite higher interest rates, and now is an ideal time for owners to capitalise on their investments.
Average vendor discounts between Q1 2023 and Q1 2024 have slightly tightened, however they have remained at discount, of -3.8% for houses and -2.2% for units. Market conditions in Wagga Wagga continue to favour buyers, were vendors are willing to accept below the initial listing price. Thus despite median price growth in the past 12 months, there are still opportunities for buyers.
House rental yields in Wagga Wagga was 3.5% as of March 2024, higher than Sydney Metro (2.9%). This was paired with a 2.1% increase in median house rental price in the past 12 months to Q1 2024, to $480 per week, and a -3.9% decline in the number of houses rented (to 464 rentals). This suggests an undersupplied house rental market and establishes the area as an alternative more affordable investment option to Sydney Metro.
4+ bedroom houses have provided investors with +3.7% rental growth annually, achieving a median rent of $560 per week.
Wagga Wagga recorded a vacancy rate of 0.6% in March 2024, well below Sydney Metro’s 1.1% average. Vacancy rates in Wagga Wagga have declined in the past 12 months, which suggests a tighter rental demand. Furthermore, vacancy rates in Wagga Wagga are well below the Real Estate Institute of Australia’s ‘healthy’ benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests a conducive rental market for investors, even if property sale prices (thus entry price) has increased in the past 12 months.
