Wagga Wagga Property Market Update 2nd Half of 2020
In Q3 2020, Wagga Wagga recorded a median house price of $372,250, and a median unit price of $295,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 0.9% for houses and of 13.5% for units. Between Q3 2019 – Q3 2020 total sales increased, by 11.6% for houses (to 337 sales) and by 60.9% for units (to 37 sales). Median price growth and increased sales activity suggest real capital growth in the area, in contrast to general COVID-19 predictions. This indicates high market resilience in Wagga Wagga, thus creating an ideal market for real estate transactions.
Average vendor discounts between Q3 2019 and Q3 2020 have tightened for houses, to -4.0%, while units have remained steady at -5.0%. Market conditions in Wagga Wagga continue to favour buyers overall, as sellers are willing to negotiate below their initial listing price. Now is the time to enter the market.
In September 2020, house rental yields in Wagga Wagga were recorded at 4.6%. In the 12 months to Q3 2020, the median house rental price increased to $360 per week, while average days on the market declined by -25.9% (to 20 days). Overall, this suggests Wagga Wagga has remained a resilient rental market throughout COVID-19.
2 bedroom houses have provided investors with +3.6% rental growth annually, with a median rent of $290 per week.
Also, in September 2020, Wagga Wagga recorded a very low vacancy rate of 0.8%, on-par with Wagga Wagga LGA (0.8%) and well below Sydney Metro (3.5%). Vacancy rates in Wagga Wagga is now at a historical low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing a declining trend even amidst COVID-19 conditions. This confirms there is an ongoing healthy rental demand, which benefits investors.